Question
An account pays interest based on the length of time a deposit has been in the account: - each full year earns an annual compounding
An account pays interest based on the length of time a deposit has been in the account:
- each full year earns an annual compounding interest rate of 8%, and
- any remaining partial year earns an annual simple interest rate of 8%.
The simple interest is based on a 365-day year.
If 10,000 is originally deposited and the account has grown to 14,067.08 when all funds are withdrawn, determine the number of days of simple interest paid?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
