document.write( "Question 556815: $10,000.00 dollars compounded daily at 1.5% interest is how much after 12 months? \n" ); document.write( "
Algebra.Com's Answer #362243 by Theo(13342)\"\" \"About 
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$10,000 compounded daily for 12 months is equal to:
\n" ); document.write( "10,000 * (1+x)^365,...
\n" ); document.write( "if we assume there are 365 days in a year.
\n" ); document.write( "this does not take into account leap years where there are 366 days in a year.
\n" ); document.write( "your equation is:
\n" ); document.write( "f = p * (1+x)^n
\n" ); document.write( "f = future value
\n" ); document.write( "p = present value
\n" ); document.write( "x = interest rate per time period.
\n" ); document.write( "n = number of time periods.
\n" ); document.write( "the equation becomes:
\n" ); document.write( "f = 10,000 * (1+x)^365
\n" ); document.write( "we know that x = 1.5%
\n" ); document.write( "the decimal equivalent of 1.5% is .015
\n" ); document.write( "that, presumably, is the interest rate per time period which means that it is the interest rate per day.
\n" ); document.write( "our equation becomes:
\n" ); document.write( "f = 10,000 * (1.015)^365
\n" ); document.write( "solve for f using your calculator to get:
\n" ); document.write( "f = 2,291,423.807
\n" ); document.write( "if the interest rate is the annual interest rate rather than the daily interest rate, then the formula is changed as follows:
\n" ); document.write( "interest rate per year = .015
\n" ); document.write( "interest rate per day = .015/365 = .000041096 (rounded to 9 decimal places)
\n" ); document.write( "your formula becomes:
\n" ); document.write( "f = 10,000 * (1.000041096)^365
\n" ); document.write( "solve for f using your calculator to get:
\n" ); document.write( "f = 10,151.12792
\n" ); document.write( "big difference.
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