Can you please help figure this out? If you have $10 investment that makes 2% daily (minus weekends and holidays), at a compounding rate of 100 percent (meaning your principal increase daily, for example you make 0.2 in the first day plus $10 as the principal equals $10.2). How much will you make in 1 year, without withdrawal?
2006-10-16 03:49:17 · 2 answers · asked by Anonymous in Business & Finance ➔ Investing
The correct answer to your question is $1,440.93.
There are 261 weekdays in a typical year, of which 10 are bank holidays, leaving 251.
To solve this problem, note that tomorrow’s value is 102% of today’s, so tomorrow’s balance is obtained by multiplying today’s balance ($10) by 1.02. For multiple days, the math involves raising 1.02 to the X power, where X is the number of days, then multiplying the result by $10. It can be done on a math calculator or a financial program such as MS Excel.
2006-10-16 11:51:55 · answer #1 · answered by Thinker 5 · 0⤊ 0⤋
Using 261 days in a given year you would have $1722 at the end at 2% per day
2006-10-16 10:56:26 · answer #2 · answered by Joe Ski 2 · 0⤊ 0⤋