IF you have $28210.00 to invest, how much interest will you earn on a 6 year investment with an interest rate of 3.10% per annum, compounded daily?

Guest Jan 27, 2012

#1**+3 **

1year = 365.2425days (leap years included, gregorian calendar days)

t = 6years = 2191.455days

interest rate per day: x = 3.10% / 365.2425

C=28210.00$

compound interest P:

P = C*(1+x)t

P= 28210.00$ * (1+3.10% / 365.2425)^2191.455 =**33976.48$**

t = 6years = 2191.455days

interest rate per day: x = 3.10% / 365.2425

C=28210.00$

compound interest P:

P = C*(1+x)t

P= 28210.00$ * (1+3.10% / 365.2425)^2191.455 =

admin
Jan 27, 2012

#3**+5 **

Best Answer## Yep.

## People asked maths questions even when the dinosaurs ruled the Earth!

## This is PROOF !!!!!

Melody
Apr 15, 2015

#5**0 **

admin *:

Don't complicate things unnecessarily!!!.

First, convert the interest rate from daily compound to annual effective rate.

So, 3.10%=.0310/365+1=1.0000849315.......etc.,.............(1)

Then raise (1) above to 365th power, which gives you annual effective rate of

1.0314841460.....etc........................................................(2)

Raise (2) above to the 6th power(for 6 years) & multiply it by the principal, or:

(1.0314841460)^6 X $28,210=$33,976.48 - $28210=$5,766.48, which is total interest over 6 years.

.

Guest Aug 19, 2015