How much is 250 worth after 1460 Dailys using an annual interest rate of 8% compounded Daily?

<-- Start Balance
<-- # of periods
<-- Interest rate
              

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How much is 250 worth after
1460 days
using an annual interest rate of 8%
compounded daily?

Calculate effective interest rate

There are 365 days in a year
Convert interest rate to daily

Daily Interest  =	Annual Interest Rate
	Compounding Periods

Daily Interest  =	0.08
	365

Daily Interest = 0.00021917808219178

Calculate Accumulated Balance

A = B(1 + i)ⁿ
where A = accumulated balance
B = opening balance
i = Daily interest rate
and n = number of periods

Plugging in our values

A = 250(1 + 0.00021917808219178)¹⁴⁶⁰
A = 250(1.0002191780822)¹⁴⁶⁰
A = 250(1.3770794784425)
A = 344.27

How much interest was earned?

Interest Earned = Accum. Value - Start Balance

Plug in our values

Interest Earned = 344.27 - 250.00
Interest Earned = 94.27

See Answer

A = 344.27
Interest Earned = 94.27

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Compound Interest Accumulated Balance Calculator Video

Tags:

• compound interest accumulated balance
• compound interest
• interest rate
• principal
• yield

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