What is the interest at the end of one year if the interest paid is compounded daily?

Question

You deposit $100,000 at 1.2% per year in a money market account. What is the interest at the end of one year if the interest paid is compounded daily?

Answer 1

Use formula A=Pe^rt to compute Amount-plus-Interest, then subtract P, original Principal.

 

P=100,000   r = 0.012,  t = 1