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Lucy invested $1500 into an account that pays 0.05% compounded daily. She is not planning to use the money for 50 years. How much will be in the account after the 50 years?
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Lucy invested $1500 into an account that pays 0.05% compounded daily. She is not planning to use the money for 50 years. How much will be in the account after the 50 years?

User MAHDTech
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Answer:

The future value of an investment with daily compounding can be calculated using the formula:FV = PV * (1 + r/n)^(nt)Where:PV = $1500 (present value)r = 0.05% (daily interest rate)n = 365 (number of compounding periods per year)t = 50 (number of years)Plugging in the values, we get:FV = $1500 * (1 + 0.0005/365)^(365 * 50)

FV ≈ $29,371.57So after 50 years, the account will be worth approximately $29,371.57.

Explanation:

User Pacey
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