Use the formula for computing future value using compound interest to determine the value of an account at the end of 5 years if a principal amount of $2,500 is deposited in an account at an annual interest rate of 6% and the interest is compounded daily. Assume there are 365 days in a year. Do not round until the end of your calculations; then, round to the nearest cent as needed.

Question

anonymous · Answer

FV=2500(1+(.06/365))^(5*365)=$3374.56

anonymous · Answer

your a wizzzzz at this:)

anonymous · Answer

well yeah im majoring in engineering with minors in finance and accounting so i guess i have to be haha

anonymous · Answer

Suppose Carla has $10,000 to invest. Which investment yields the greater return in 2 years: 7% compounded monthly or 6.85% compounded daily? 

.. this would just be the 2 years right?

anonymous · Answer

well let me calculate it one sec...

anonymous · Answer

the monthly compounding at 7% would yield more

anonymous · Answer

k good thats what i got!

anonymous · Answer

nicceee

anonymous · Answer

When it gives me these problems im not quite sure how to start it, since i dont have like the values/$ and stuff.. if that makes sense? 

A bank gives you two options to choose from for your investments. Decide which is the better investment at the end of 2 years.

Option A: 5% annual interest rate compounded yearly; and
Option B: 4.95% annual interest rate compounded quarterly

anonymous · Answer

yeah that makes sense. usually i just use 100 for the initial investment since its easy to work with, but anyway here i'll calc this one real quick

anonymous · Answer

The quarterly at 4.95% is the better investment since it would yield more

anonymous · Answer

okay so usually using 100 is just an easy way to figure it out?

anonymous · Answer

yeah just because its easy to multiply things by