Question

If I invest 5,000 at a rate 8.5% for 13 days? How much interest will I earn on my investment if the interest is compounded daily?
I need help with setting up formula or help in general. Any help is appreciated.

Answer 1

Using the formula A = P(1 + r/n)^nt

P = 5,000

r = 8.5% or 0.085

n = 365

t = 13/365 (13 days out of a year)

A = 5,000 (1 + 0.085/365)^365*13/365

A = 5015.16

You will earn $15.16