Question

$25,000 is invested for 5 years with an APR of 3% and daily compounding.

Answer 1

$29,045.69

Explanation:

The total amount accrued, principal plus interest, with compound interest on a principal of $25,000.00 at a rate of 3% per year compounded 365 times per year over 5 years is $29,045.69.

A = P(1 + r/n)nt

A = 25,000.00(1 + 0.03/365)(365)(5)

A = 25,000.00(1 + 8.2192E-5)(1825)

A = $29,045.69