The question is: Naveen deposited 600$ into a savings account that earns 3.5% simple interest, paid daily. How much money will she have after 6 months?...... When I use the simple interest formula( a=P(1+rt) ) the answer is incorrect but when I use the compound interest formula(A=P(1+(i/n)^nt) i get the correct answer. Is there a problem with the question or am I doing it wrong?
+118613 Neither!
This is simple interest because the money is actually PAID each day. Each dày the money is growing so if you look at what you have at the end compared to what you started with it will behave like compound interest.
You are not doing it wrong exacly but you are not doing it 182 times either. That's how many times simple interest has been earned.
The only sensible way to do this is with the compound interest formula.
+118613 Neither!
This is simple interest because the money is actually PAID each day. Each dày the money is growing so if you look at what you have at the end compared to what you started with it will behave like compound interest.
You are not doing it wrong exacly but you are not doing it 182 times either. That's how many times simple interest has been earned.
The only sensible way to do this is with the compound interest formula.
