Quandaries and Queries
Name: Terie
Who is asking: Other
Level: All
Question:
If I owe $2000.00 @ 6.25% compounded daily for 54 days. How much do I owe in interest?
Hi Terie,
Each day you owe 1/365 of 6.25% in interest and this will be compounded. Each day the interest is calculated using what you owe on that day. Thus after one day you owe 2000(1 + 0.0625/365) and hence the interest is