Asked by Amber
Calculate, to the nearest cent, the future value FV of an investment of $10,000 at the stated interest rate after the stated amount of time. HINT [See Example 1.]
5% per year, compounded daily (assume 365 days/year), after 11 years
work:10,000(1+0.05/365)^(365)(11)=17331.87
this is the answer i got but i keep getting it wrong
5% per year, compounded daily (assume 365 days/year), after 11 years
work:10,000(1+0.05/365)^(365)(11)=17331.87
this is the answer i got but i keep getting it wrong
Answers
Answered by
Henry
V = Vo(1+r)^n
r = 5%/365/100% = 0.00013699 = Daily %
rate expressed as a decimal.
n = 365Comp./yr * 11Yrs = 4015 Compounding periods.
V = 10,000(1.00013699)^4015 = $17,332.13
r = 5%/365/100% = 0.00013699 = Daily %
rate expressed as a decimal.
n = 365Comp./yr * 11Yrs = 4015 Compounding periods.
V = 10,000(1.00013699)^4015 = $17,332.13
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.