Question
You originally invested $56,789.25 and left it on deposit for 8 years. While the bank advertised an annual rate, the investment was said to compound
You originally invested $56,789.25 and left it on deposit for 8 years.
While the bank advertised an annual rate, the investment was said to compound interest on a daily basis or 365 days a year.
The ending balance after 8 years was $97445.88.
What was the daily compound interest rate on this investment?
Take out to 7 decimal places before converting to a percentage.
The use of excel's Goal Seek is the suggested way to solve for the compound rate.
| a. | Daily Rate = .0156% | |
| b. | Daily Rate = .0815% | |
| c. | Daily Rate = .0195% | |
| d. | Daily Rate = .0185% |
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Essentials Of Real Estate Finance
Authors: Doris Barrell
15th Edition
1475462077, 978-1475462074
