$100.00 in a bank account getting 5% interest. How much would the account be worth after 9 months?
Answer:
It depends on which nine months you are talking about.
Savings accounts compound interest daily using an "actual/360" method. This means that to find the value after N days, you compound N days using a rate of 5%/360.
If you start now, nine months from now will be 273 days. You will have:
100*(1+.05/360)^273 = 103.86
103.75 considering both the interest is an annual rate and if a regular savings account actually gives that high of a savings rate (except for internet banks).
It depends on what the 5% compounds at.
5% annual interest is $103.73
if compounds daily, monthy or quarterly worth more.
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