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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

Best Answer 

 #3
avatar+92806 
+5

Yep.  

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

This is PROOF !!!!!

 

Melody  Apr 15, 2015
 #1
avatar+3076 
+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$
admin  Jan 27, 2012
 #2
avatar+1000 
+5

WOW this was years ago!!!

Trincent  Apr 14, 2015
 #3
avatar+92806 
+5
Best Answer

Yep.  

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

This is PROOF !!!!!

 

Melody  Apr 15, 2015
 #4
avatar+4664 
0

#Mind-Blown!

MathsGod1  May 9, 2015
 #5
avatar
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

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