Question

Jason deposited $18 000 in a bank that offers an interest rate of 5% per annum compounded

daily.
He kept the money in the bank for 20 days, before withdrawing an amount, H.
Given that, the balance in the bank after another 20 days is $16 093.41, find H.

Answer 1

$1995.97.

Explanation:

Amount in bank after 20 days =

18000(1 + 0.05/365)^20

= $18049.38

So H = 18049.38 - 16093.41

= $1995.97.