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22 October, 08:51

Joan invests $800 at 12.5% per anum compound intrest compounded daily. What is the amount of intrest at the end of first year?

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  1. 22 October, 12:49
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    A=P (1+i) ^n

    P=800

    i=0.125/12 (12.5/100 to get from percentage to normal and / 12 to convert from year to months)

    n=12

    A=800 (1+0.125/12) ^12

    =905.93

    Therefore, Interest = 905.93-800

    =105.93
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