



 
Cheryl, Let's start with something easier. Suppose the interest is 5%, compounded once a year and you want to know the value at the end of the year. Since the interest is 5% per year then at the end of the year you receive
I'm not really interested in the value, just the method used to calculate it. If the value is $P and the interest rate for the period is r then the value at the end of the period is
Now back to your problem. The calculate is very much the same. If the interest rate is 2.53% which is 0.0253 then the daily rate is 0.0253/365 . Hence at the end of the first day the value is
That's is then the value at the beginning of the second day, thus it is $P at the beginning of the second day. Hence the value at the end of the second day is
That's is then the value at the beginning of the third day, thus it is $P at the beginning of the third day. Hence the value at the end of the third day is
I hope you see the pattern now. What is the value at the end of the 183rd day? Penny  


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