Question

if $6,000 is invested at an annual interest rate of 1.83%, compounded daily, what will the investment be worth after 10 years?

Answer 1

$7,204.85

Explanation:

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Answer 2

`\$7,204.85`

Explanation:

we know that

The compound interest formula is equal to

`A=P(1+(r)/(n))^(nt)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

`t=10\ years\\ P=\$6,000\\ r=0.0183\\n=365`

substitute in the formula above

`A=\$6,000(1+(0.0183)/(365))^(365*10)=\$7,204.85`