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Assuming there were no payments made, what's the formula to calculate accumulated interest? I know the initial principal balance, the number of days where interest compounded daily, and the APR.

 Feb 10, 2015

Best Answer 

 #1
avatar+118612 
+5

FV=P(1+r)^n

so

Int=P(1+r)^(n)   -P

 

If $2000 is invested for 4 years and interest is 5%p.a. accumulated daily then

P=2000

r=0.05/365

n=4*365

 Feb 10, 2015
 #1
avatar+118612 
+5
Best Answer

FV=P(1+r)^n

so

Int=P(1+r)^(n)   -P

 

If $2000 is invested for 4 years and interest is 5%p.a. accumulated daily then

P=2000

r=0.05/365

n=4*365

Melody Feb 10, 2015

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