You invest an initial $2,000 in an account that has an annual interest rate of 6%, compounded daily. How much money will you have in the account after 15 years? Round your answer to the nearest whole number

Question

anonymous · Answer

What formula or formulae do you think might be appropriate here?

anonymous · Answer

t=10, so p(10)=430*1.009^10?

anonymous · Answer

Apply this formula:
$$A= P\left(1 + \frac{r}{n}\right)^{nt}$$
* A = final amount
* P = principal amount (initial investment)
* r = annual nominal interest rate (as a decimal, not in percentage)
* n = number of times the interest is compounded per year
* t = number of years

anonymous · Answer

do i get 1.06

anonymous · Answer

No, you may've mistyped something into your calculator.

anonymous · Answer

for the first step

anonymous · Answer

Oh, for $1+\frac{r}{n}$? Not quite. You have to do $1+\frac{0.06}{365}$ since the interest is compounded every day and there are $365$ days in the year.

hero · Answer

Looks like someone already helped you?