Question

What is the value of an investment of $6,835.69 at 3.88% interest compounded daily for 6 years?

Answer 1

\[p _{kt} = p _{0}(1+\frac{ r }{ k })^{kt}\] we can re write it as \[\frac{ p_{kt} }{ (1+\frac{ r }{ k })^{kt} } = p _{0}\]

Answer 2

so \[6835.69/(1+\frac{ 0.0388 }{ 365 })^{365*6}\] = 5416.07

Answer 3

@Lily2913 how could it be less than the original starting amount?

Answer 4

sorry miss read.. I thought you wanted the initial value with the total being 6835.69

Answer 5

in that case it would be \[P _{kt} = 6835.69(1+\frac{ 0.0388 }{ 365 })^{365*6}\]

Answer 6

8627.416

Answer 7

oh ok that's what I got too thanks for your help :)

Answer 8

np. sorry about the mix up.