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| Math Central | Quandaries & Queries |
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Subject: compound daily interest calculate the return on $20,000 for 3 years at an interest rate of 8% that compounds daily. |
Hi Sharon.
You do it: the formula is
B = P x (1 + R/N)TxN
where B is the balance at the end, P is the principal at the start, R is the annual rate of interest, N is the number of times per year the interest is compounded and T is the time in years. You want B and you have all the other variables, so plug them into your calculator and find the answer.
Hope this helps,
Stephen La Rocque.
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