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12 April, 06:12

Asia Desai deposited $6,000 in a savings account that pays 5.5% interest compounded daily. How much interest did she earn in 21 days?

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  1. 12 April, 07:20
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    21 days = 21/365 years = 0.0575342466 years

    n = compounding periods per year = 365

    Total = Principal * (1 + rate/n) ^n*years

    Total = $6,000 * (1 + (.055/365)) ^365*0.0575342466

    Total = $6,000 * (1 + 0.0001506849) ^21

    Total = $6,000 * 1.00316915570

    Total = $6,019.01
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