O1F Posted April 28, 2008 Share Posted April 28, 2008 Hopefully this is posted in the right section. With a start bank of $1000, how much would it grow to in 365 days if 1% is compounded daily? Thanks for any replies :ok Quote Link to comment Share on other sites More sharing options...
muppet77 Posted April 28, 2008 Share Posted April 28, 2008 Re: Question on calculation of FV 37,409.34 Quote Link to comment Share on other sites More sharing options...
O1F Posted April 28, 2008 Author Share Posted April 28, 2008 Re: Question on calculation of FV Thanks muppet77! Quote Link to comment Share on other sites More sharing options...
koochak Posted April 28, 2008 Share Posted April 28, 2008 Re: Question on calculation of FV Muppet gave the wrong answer. The correct answer is $37,783.43 Quote Link to comment Share on other sites More sharing options...
kef4o Posted April 28, 2008 Share Posted April 28, 2008 Re: Question on calculation of FV koochak is right. Your question is quite simple really: a daily increase by 1% means that you should just put the number 1.01 to the power of 365. Quote Link to comment Share on other sites More sharing options...
Grex Posted April 28, 2008 Share Posted April 28, 2008 Re: Question on calculation of FV I hate to be an "anorak" :zzz.... but you could both be right... it depends how you interpret the first 2 days. If you start with a bank of $1,000 on Day 1, and don´t apply the 1% interest until Day 2, then the equation would be 1000*(1.01^364) = 37,409.34.... however, if you assume you earn the 1% interest on Day 1, then it would be 1000*(1.01^365) = 37,783.43. Anyway, what´s $374.09 between friends! :lol Quote Link to comment Share on other sites More sharing options...
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