Asia Desai deposited $6,000 in a savings account that pays 5.5% interest compounded daily. How much interest did she earn in 21 days?

Question

anonymous · Answer

@agent0smith :) ??

anonymous · Answer

so is it continuously or what?

anonymous · Answer

wait so compounded daily means once a day?

anonymous · Answer

I think it is 22909...

anonymous · Answer

so im guessing it's compounded once a day so 6000x.005=330+6000=6330
and then continue that pattern 21 times...
but don't worry I'll do the math.

anonymous · Answer

there is a shorter way to this but i forgot how to do it...

anonymous · Answer

It's okay. I got it. Thank you. @helplesspenguin

anonymous · Answer

Thank you. @VansSkater

anonymous · Answer

oh how did you do it? did you use sigma notation?

agent0smith · Answer

$$\Large A= P \left(  1+\frac{ r }{ n }  \right)^{nt}$$
n in this case is 365 since it's compounded daily. 

t would be 21/365 since it's only 21 days of a year.

r is the interest rate 0.055. P is $6000