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How much interest does $10,000 earn in two days at an interest rate of 6%, compounded daily

User Vmt
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Final answer:

The interest earned on $10,000 in two days at a 6% interest rate, compounded daily, is $3.29.

Step-by-step explanation:

To calculate the amount of interest earned on $10,000 in two days at an interest rate of 6%, compounded daily, we can use the formula A = P(1 + r/n)^(nt), where:

  • A is the final amount
  • P is the principal amount (initial deposit)
  • r is the annual interest rate (as a decimal)
  • n is the number of times interest is compounded per year
  • t is the time in years

In this case, P = $10,000, r = 0.06, n = 365 (since interest is compounded daily), and t = 2/365 (since we want to calculate the interest over two days). Plugging in these values, we get:

A = 10000(1 + 0.06/365)^(365 * 2/365)

Simplifying this expression gives us:

A = 10000(1 + 0.00016438356)^(2)

A = 10000(1.00016438356)^2

A = 10000 * 1.00032877

A = 10003.29

Therefore, the interest earned on $10,000 in two days at an interest rate of 6%, compounded daily, is $3.29.

User Michelepatrassi
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