Question

In investment of $500 earns 1.9%interest and is compounded daily

Answer 1

Remember that the formula for compound interest is:

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

• 
  `P` is the principal, or starting amount
• 
  `r` is the interest rate, represented as decimal
• 
  `n` is the number of times the investment is compounded per year
• 
  `t` is the amount of years the investment is compounded over

In this case,

• 
  `P = 500` because we start our investment at $500
• 
  `r = .019` because our interest rate is 1.9%
• 
  `n = 365` because the investment is compounded daily, or 365 times per year
• The problem does not state a value for
  `t`

Thus, the formula for this problem would be

`\boxed{500(1 + (.019)/(365))^(365t)}`.