Calculate the interest earned in a compound interest account on $5000, if the account interest rate is 5%, compounded daily over 5 years.
The answer I got was $6,420.06
My other question is if i wanted to find out how much this was per year I would just divide it by 5 correct? Just wanted to make sure that wasn't any other special formula for figuring that out.
How would I solve for how much is compounded daily per year so that I could show the amount on a chart for the next 25 years. I divided the amount I found by 5 and did not get the results that I thought I would. Is there a special formula on how to find the amount per year? or do I use the same formula?
The answer I got was $6,420.06
My other question is if i wanted to find out how much this was per year I would just divide it by 5 correct? Just wanted to make sure that wasn't any other special formula for figuring that out.
How would I solve for how much is compounded daily per year so that I could show the amount on a chart for the next 25 years. I divided the amount I found by 5 and did not get the results that I thought I would. Is there a special formula on how to find the amount per year? or do I use the same formula?