Jaeger´s little Bank

[Krex]

I was assuming that the interest would stack, as they normally do.
Say you start with 500k, after one day you're at 525k, as you said, but that would make the 5% interest rate 26.5k, instead of 25k.

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As a graph, to visualize it, it would be F(x)=500*1.05^X. With a decent-ish calculator you can take a look at it.
I've been using the one from Texas Instruments we use in school, and that's how I got to my result.