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Answer:
He earns $0.24 in interest after 1 day.
Step-by-step explanation:
Compound interest:
In which:
P is the principal, the amount of the initial deposit.
r is the yearly interest rate, as a decimal.
n is the number of compoundings during a year.
t is the number of years.
In this question:
Deposit of $1,750, so P = 1750.
Interest rate of 5%, so r = 0.05.
Compounded daily. A year has 365 days, so n = 365.
After 1 day. 1 day is 1/365 of an year, so t = 1/365.
The amount he will have after one day will be:
The interest earned will be:
Amount after 1 day subtracted by the deposit.
Deposit of $1,750.
After 1 day, he will have $1,750.24.
1750.24 - 1750 = 0.24
He earns $0.24 in interest after 1 day.