Question

Find the compound interest on $2,500 at .75% interest compounded daily by the Leader Financial Bank for 20 days.

Answer 1

Interest= $402.96

Step-by-step explanation:

Giving the following information:

Initial investment (PV)= $2,500

Interest rate (i)= 0.0075

Number of periods (n)= 20 days

To calculate the interest earned after 20 days, we need to use the following formula:

Interest= PV*(1 + i)^n - PV

Interest= 2,500*(1.0075^20) - 2,500

Interest= $402.96