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$6,000 for 6 years at 8½% compounded daily will grow to ?

User Tom Scrace
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1 Answer

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When an amount
P is invested for
t years during which it earns an interest of
r dollars compounded
m times per year, the formula to calculate the amount that investment grows to after
t years is,


A=P(1+\tfrac{r}{m})^(mt).

Assuming that a years has 365 days ,the values for each of these variables is given as follows,
m=365 ,
t=6
r=8.5\%=0.085 . The value of the investment after 6 years is then calculated as shown below,


A=P(1+\tfrac{r}{m})^(mt)\\A=6000(1+\tfrac{0.085}{365})^((365* 6))\\A=9991.15

The investment grows to reach $9991.15 in 6 years.



User Rchukh
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