Subject: figuring interest compounded daily How do I figure interest that is compounded daily? 8% compounded daily. Your prompt answer would be greatly appreciated.
Debbie Bracken I assume that the interest rate is 8% per year, compounded daily. If you invest $A at an interest rate of r for t years, compounded n times per year then the balance after the t years is Hence if you invest $A at 8% for t years compounded daily then the balance after t years would be A very good approximation to this is given by expression where e, the base for the natural logarithms, is approximately 2.71828 Cheers,Penny
