$200,000 invested 28 days compounded daily at 6% annual interest. How much interest is earned on the investment? How much money will you have to invest in the startup after 28 days?

Question

Compound interest

Answer 1

Daily interest rate is 0.06/365=0.000164 approx. Growth after 28 days is 1.000164^28=1.00461 approx. apply this to $200,000=$200922.59, so there is $922.59 interest.

Answer 2

a) How much interest is earned on this investment?

5.11169(100%)=0.0511169

0.0511169(200,000)=10,223.38

$10,223.38 was earned

b) How much money will you have to invest in the startup after the 28 days?

$200,000+10,223.38=$210.223.38

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