Question

John Smith has found a​ short-term investment opportunity. He can invest ​$6,000 at 0.75 % interest for 15 days. How much interest will he earn on this investment if the interest is compounded​ daily? Click the icon to view the table of compound interest of​ $100 compounded daily.

Answer: The Interest is $ . (Round to the nearest cent as needed.)

Answer 1

$45.16

Explanation:

Given:

Principle amount = $6,000

Rate of interest, r = 0.75%

Duration = 15 days

Since, the interest is compounded daily

Future value =
`\textup{Present value}*(1+(r)/(n))^n`

or

Future value =
`6000*(1+(0.0075)/(15))^15`

or

Future value = $6045.16

Therefore,

the interest earned = Future value - Principle amount

or

The interest earned = $6045.16 - $6000 = $45.16