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Easy Math question! Plz help?

You start out with $20,000,000 and earn 2% interest daily on the amount you have each day. How much will you have in the bank after 90 days?

For instance:

1st day I will earn 400,000 and have a total of 20,400,000

2nd day I will earn 408,000 and have a total of 20,808,000

3rd day I will earn 416,160 and have a total of 21,224,160

90th day I will earn X and have a total of X amount.

I find it hard because the 0.02% counts towards the money you earned from the previous day and it accumulates.

Can someone tell me the equation or tell me how to solve it please?

Update:

Why would you add 1.02% to the power n days and multiply it to you starting amount?

How does this work? Can someone explain it to me?

1 Answer

Relevance
  • Anonymous
    8 years ago
    Favorite Answer

    Make sure you multiply by 1.02%. This way it will keep you original amount and simply add 2% to your previous amount. What you want to do is take that 1.02% and take it to the 90th power. Multiply that by your original amount of $20,000,000. That is your answer. I wish my interest was like this. LOL

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