A $1000 deposit at 5% p.a.with daily compounding will earn interest of $1161.82 in three years.

Name: A $1000 deposit at 5% p.a.with daily compounding will earn interest of $1161.82 in three years.
Brand: Quizplus
Rating: 4.9 (45 reviews)

Question

Quizplus · Accepted Answer

With daily compounding, the future value of a $1000 deposit at 5% per annum over three years is calculated using the formula $A = P(1 + \frac{r}{n})^{nt}$, where $P = 1000$, $r = 0.05$, $n = 365$, and $t = 3$. This does not yield $1161.82; the correct calculation gives a different amount.

A $1000 Deposit at 5% P