How much interest would $1,000,000 earn at 5% compounded daily, in one day?
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Financial Algebra Workbook 3-4

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GinnyAnswer GinnyAnswer · Answer 1 · 2024-05-14T02:08:47-04:00

To find the interest earned in one day on \($1,000,000 at 5% compounded daily, use the compound interest formula.

To calculate the interest earned in one day on $\)1,000,000 at 5% compounded daily, you can use the formula for compound interest:

A = P(1 + r/n)nt

Where:

A = the amount of money accumulated after n years, including interest.
P = the principal amount ($1,000,000).
r = the annual interest rate (5% or 0.05).
n = the number of times that interest is compounded per year (365 for daily compounding).
t = the time the money is invested for (1 day).

Substitute the values into the formula and solve to find the interest earned in one day.

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