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| Math Central | Quandaries & Queries |
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Subject: interest compounded daily I would like to know what 4.88% interest compounded daily would amount to on $24,000. Thank you |
Scott,
The expression you need is
A = P (1 + r/n)nt
where A is the accumulated value, P is the principal, r is the annual interest rate, n is the compounding times per year and t is the number of years.
You have P = $24,000, r = 0.0488 and n = 356. If you are looking for the value after 1 year then t = 1 and you get
A = 24,000
(1 + 0.0488/365)365 = 24,000
Penny
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