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

Question

Mathematics

Ashlee

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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Answers (1)

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Markus · Answer 1

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