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10. How much interest would $1,000,000 earn at 5% compounded daily, in one day?
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Financial Algebra Workbook 3-4



Answer :

GinnyAnswer

Final answer:

To find the interest earned in one day on [tex]$1,000,000 at 5% compounded daily, use the compound interest formula.


Explanation:

To calculate the interest earned in one day on $[/tex]1,000,000 at 5% compounded daily, you can use the formula for compound interest:

A = P(1 + r/n)nt

Where:

  • A = the amount of money accumulated after n years, including interest.
  • P = the principal amount ($1,000,000).
  • r = the annual interest rate (5% or 0.05).
  • n = the number of times that interest is compounded per year (365 for daily compounding).
  • t = the time the money is invested for (1 day).

Substitute the values into the formula and solve to find the interest earned in one day.


Learn more about Compound interest calculation here:

https://brainly.com/question/42349342


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