document.write( "Question 1190651: what is the future value of an ordinary annuity having daily payments of 50 pesos for 30 days with an rate of 20% compounded daily? \n" ); document.write( "

Algebra.Com's Answer #849217 by ikleyn(52786) $\"\"$ $\"About$

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document.write( "I used the same general formula, but I did not round  r = 0.2/365:  I kept it as is.\r\n" );
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document.write( "So, my formula was\r\n" );
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document.write( "    FV = 50 * [ ((1 + 0.2/365)^30 - 1) / (0.2/365) ].\r\n" );
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document.write( "It provides more precise calculations and makes final rounding only at the very end.\r\n" );
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document.write( "    In such calculations, making rounding at the very end only \r\n" );
document.write( "    and do not making intermediate rounding is critically important \r\n" );
document.write( "    for precision and is STRONGLY RECOMMENDED.\r\n" );
document.write( "    Intermediate rounding like 0.20 / 365 ≈ 0.0005479, as the other tutor makes,\r\n" );
document.write( "    is traditionally considered as a non-appropriate way.\r\n" );
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document.write( "Also, I used MS Excel as my calculator.  It works with 15-bit numbers.\r\n" );
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document.write( "My answer is 1511.99 pesos.\r\n" );
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