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Homework answers / question archive / You invest OMR 29 at an annual rate of 3
You invest OMR 29 at an annual rate of 3.5% for one year. What is the differences in interest earned it you compound this money on a daily basis instead of an a Select one: O a OMR 33.80 b. OMR 12.92 COMR 16,69 d. OMR 24,60 OMR 2152
Compounded annually:
Future value = Present value (1 + rate)^periods
Future value = 29,000 (1 + 0.035)
Future value = 30,015
Compounded dailty:
Daily rate = 3.5% / 365 = 0.00959
Number of periods = 1 * 365 = 365
Future value = Present value (1 + rate)^periods
Future value = 29,000 (1 + 0.0000959)^365
Future value = 29,000 * 1.03562
Future value = 30,032.92116
Difference = 30,032.92116 - 30,015
Difference = OMR 17.92
