Problema Solution
What is the balance after 1 year of an account containing $1200 which earns a yearly nominal interest of 4% that is compounded every minute (there are 525,600 minutes per year)?
Answer provided by our tutors
P = 1200
i = 0.04
Compounded every minute for 525,600 minutes:
1200(1 + (0.04/525600))^525600 = 1248.97
The balance after one year is $1,248.97.