Aug 03, 2014 · 2) Annual interest rate is .95% 3) Interest is compounded daily 4) Fixed withdrawals of $1750 are taken each and every month on the first day of each month What is the total interest earned on the account? Basically, it is a issue where each month diminishes the "pool" of money earning interest. Mar 22, 2017 · Remarkable in both its simplicity and its power, compound interest is the concept of reinvesting, along with the original principal sum, the interest earned on your investment. As a result, you... The math for compound interest is simple: Principal x interest = new balance. For example, a $10,000 investment that returns 8% every year, is worth $10,800 ($10,000 principal x .08 interest = $10,800) after the first year. It grows to $11,664 ($10,800 principal x .08 interest = $11,664) at the end of the second year.