If $5,000 is invested at a rate of 5.8% compounded
daily, how much will the investment be worth in
3 years?
@ganesie8

Question

If $5,000 is invested at a rate of 5.8% compounded
daily, how much will the investment be worth in
3 years?
@ganesie8

faiqraees · Answer

@ganeshie8

mayankdevnani · Answer

there is a specific formula for it 
Value after t years,A is
$$\large \bf A=P(1+\frac{r}{n})^{nt}$$
where,
P is amount invested
r is interest rate
n is times invested per year
t is time

mayankdevnani · Answer

in this case n=365

faiqraees · Answer

Yeah but the problem is the formula doesn't make much sense to me. I mean we divide the number of days and then made it an exponent.....?

mayankdevnani · Answer

http://www.onemathematicalcat.org/Math/Algebra_II_obj/compound_interest_formula.htm here is a good proof :)

mayankdevnani · Answer

try to invest your time into reading it,i'm sure it'll definitely helps :D

faiqraees · Answer

Okay got it thanks. It definitely peaked my interest.

mayankdevnani · Answer

Glad to help you :)