- #1
Astro
- 48
- 1
Homework Statement
January 1, 2010, opening cash balance is $20590.17.
January 31, 2010, closing cash balance is $20626.89.
Interest rate is 2.1%.
Interest paid is $36.72.
(There are 31 days in January 2010).
I=interest
A=amount (ie. P+I)
P=principal
i=interest rate per compounding period
n=number of compounding periods
Homework Equations
Show how the interest was calculated.
The Attempt at a Solution
I=P(1+i)^n-P
=$20590.17(1+0.21/365)^31-$20590.17
=$36.75555504
=$36.75
$36.75 not= $36.72 x_X Where have I gone wrong? :S