If you loan $50 at 5.25% interest compounded hourly for seven days, how much would it be?

Answer 1

Formula:

P is the principal (the initial amount you borrow or deposit)

r is the annual rate of interest (percentage)

n is the number of years the amount is deposited or borrowed for.

A is the amount of money accumulated after n years, including interest.

When the interest is compounded once a year:

A = P(1 + r)n

Monthly = P (1 + r/12)^12 = (monthly compounding)
daily= P (1 + r/365)^365= (daily compounding)
hourly = P (1 + r/365*24)24*7 = (hourly compounding)
hourly=50(1+0.0525/8760)^24*7
168 hourly=168*50(1+0.0525/8760)^24*7
168 hourly=168*50*(1+0.0525/8760)^168
=$8408.46

Answer 2

Your problem is ill-stated. What is the defined period for the interest rate? Typically, a 5.25% interest would represent an ANNUAL percentage rate, in which case, the correct equation is:

$50*(1+0.0525/(365*24))^(24*7), which would net you a trifle bit more than 5 cents

Answer 3

Do you have a calculator? It's 50*1.0525^(24*7)

Answer 4

I have $50, may I know the sources who will pay this interest so I can lend and make profit?

Answer 5

Go to: http://math.about.com/library/weekly/aa042002a.htm

for all formulas regarding compound interest. Use one of the given formulas to answer your question.

Guido

Answer 6

p=principle=50$
r=rate of interest per hour
=.0525/365*24
A=sum=50[1+.0525/365*24]^7*24
=50[1.000006]^168
=50*1.01013
=50.50$

Answer 7

$27,0572.45