I have a question

[fernykins]

What is the amount of interest on 400000 at 0.50% compounded daily for 30 days

Fern

[Greebo]

What is the amount of interest on 400000 at 0.50% compounded daily for 30 days

Fern

.50% per what? Day? Week? Month? Year?

Excel:
Year: =FV(.50/365, 30, 0, -400000) =$16,769.08

That is FV Future Value
at rate .5/365 (50%/365 days a year)
for 30 days
with 0 daily addition
starting with 400,000 (which has to be negative)

[a.nonymous]

.5% daily, monthly, quarterly, annually?

[JanieD]

Is the answer $166.67?

400,000 x .50% = 2,000 divide(couldn't find that key) 12 months = 166.67 OR

2,000 divide 365 days = 5.48 x 30 days = 164.40

[Greebo]

Hah, I hosed that up. I did 50% annually not half a percent.

Yeah, 164.42.

	Bal	Int	New
Day 1	$400,000.00	$5.48	$400,005.48
Day 2	$400,005.48	$5.48	$400,010.96
Day 3	$400,010.96	$5.48	$400,016.44
Day 4	$400,016.44	$5.48	$400,021.92
Day 5	$400,021.92	$5.48	$400,027.40
Day 6	$400,027.40	$5.48	$400,032.88
Day 7	$400,032.88	$5.48	$400,038.36
Day 8	$400,038.36	$5.48	$400,043.84
Day 9	$400,043.84	$5.48	$400,049.32
Day 10	$400,049.32	$5.48	$400,054.80
Day 11	$400,054.80	$5.48	$400,060.28
Day 12	$400,060.28	$5.48	$400,065.76
Day 13	$400,065.76	$5.48	$400,071.24
Day 14	$400,071.24	$5.48	$400,076.72
Day 15	$400,076.72	$5.48	$400,082.20
Day 16	$400,082.20	$5.48	$400,087.68
Day 17	$400,087.68	$5.48	$400,093.16
Day 18	$400,093.16	$5.48	$400,098.64
Day 19	$400,098.64	$5.48	$400,104.12
Day 20	$400,104.12	$5.48	$400,109.60
Day 21	$400,109.60	$5.48	$400,115.08
Day 22	$400,115.08	$5.48	$400,120.57
Day 23	$400,120.57	$5.48	$400,126.05
Day 24	$400,126.05	$5.48	$400,131.53
Day 25	$400,131.53	$5.48	$400,137.01
Day 26	$400,137.01	$5.48	$400,142.49
Day 27	$400,142.49	$5.48	$400,147.97
Day 28	$400,147.97	$5.48	$400,153.45
Day 29	$400,153.45	$5.48	$400,158.93
Day 30	$400,158.93	$5.48	$400,164.42

[Greebo]

Is the answer $166.67?

400,000 x .50% = 2,000 divide(couldn't find that key) 12 months = 166.67 OR

2,000 divide 365 days = 5.48 x 30 days = 164.40

That stops working on about day 75, when the interest per day goes up to $5.49.

Compounding.

[JanieD]

That stops working on about day 75, when the interest per day goes up to $5.49.

Compounding.

BUT, I thought it was for 30 days only? Oh well, I was sort of guessing. I didn't really think about the compounding daily part... kind of missed that.

[Greebo]

BUT, I thought it was for 30 days only? Oh well, I was sort of guessing. I didn't really think about the compounding daily part... kind of missed that.

Oh, it was - but getting the right answer using the wrong method is still the wrong method.

[kita]

Greebo,
Do you know where I can earn 50%?

[Greebo]

Greebo,
Do you know where I can earn 50%?

I wish I did!!!

Even on our real estate our gross rate of return is only 35%. And by no means compounded.