You inherit 200000 and decide to invest it for 28 days compo

You inherit $200,000 and decide to invest it for 28 days compounded daily at 6% annual interest. After the 28 days, you are going to invest your new found money in a startup business.

How much interest is earned on this investment?

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

Solution

A = P(1+r/n)^(nt)

=>

Amount = 200000*[1+0.06/365]^(365*28/365] = 200000*[1+0.06/365]^28 = $200922.594