How To Find the Compound Interest Daily?

Question

How many days will it take to build $1000.00 to at least $7500.00 at 9% compounded daily? I have already know the years for this equation, but I do not know how many days would it take for the money to build at least $7500.

Answer 1

If you have calculated already for the number of years, then you should be able to simply multiply the number of years by 365 to determine the total number of days for the money to reach the $7500 amount.

The formula you should be using to solve for "t", the number of years, is: A = P( 1 + r/n)^nt, where A = the final amount ( or $7,500), P = the initial amount ( or $1000), r = the interest rate ( 9%), n = the number of times a year the interest is compounded ( or 365 since it is daily compounding), and t = the number of years.

When I solved for "t", I got 22.0839 years, and so now we multiply this by 365 to find how many days in all.

The result is 8060.62 days, so we round up to full days to at least reach $7500 and we get 8061 days. Hope this helps!