Final answer:
The final amount of a $300 investment at 7% interest compounded daily for two years is approximately $361.55, calculated using the compound interest formula A = P(1 + r/n)^(nt).
Step-by-step explanation:
The question involves calculating the final amount of an investment of $300 at a 7% interest rate compounded daily for two years. To solve this, we use the formula for compound interest: A = P(1 + r/n)^(nt), where:A is the amount of money accumulated after n years, including interest.P is the principal amount (the initial amount of money).r is the annual interest rate (decimal).n is the number of times that interest is compounded per unit t.t is the time the money is invested for in years.
For daily compounding, n would be 365, as there are 365 days in a year. Plugging the values into the formula, we get:A = 300(1 + 0.07/365)^(365*2)Calculating this gives us:A ≈ $361.55Therefore, the correct answer is a. $361.55.t is the number of yearsIn this case, P = $300, r = 7% = 0.07, n = 365 (compounded daily), and t = 2 years. Plugging these values into the formula, we get:FV = 300(1 + 0.07/365)^(365*2) = $361.55Therefore, the final amount is $361.55.