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Each day, you deposit $4.47 into a bank account whose annual rate is 1% with daily compounding. How much interest will you have earned after 11 years?
Round your answer to the nearest dollar.
Solution
Just use your normal compound interest formula. The daily rate is 1/365 the annual rate, right? So, after 11 years (ignoring leap days) you will have
4.47(1 + 0.01/365)(365*11) = $5.00