Pt = Po(1+r)^n,
r = (9% / 365) / 100% = 0.00024658 = Daily % rate exprssed as a decimal.
n = 365comp./yr * 4yrs = 1460 Compound-
ing periods.
Pt = $5000(1.00024658)^1460, = $7166.33
Lance Jackson deposited $5,000 at Basil Bank at 9% interest compounded daily. What is Lance's investment at the end of 4 years?
2 answers
Steve bought 300 shares stock for x dollars per share in 2008. This year he sold the stock for y dollars per share where y<x.He lost on the transaction. is wife Lisa used the formula (y-x)/x to compare the percent of loss. Steve said Lisa was incorrect because she didn't take into acount that he bought 300 shares. Lisa said that both formulas were correct. So who is correct, steve or lisa? explain.
1 answer