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amelia is going to invest in an account paying on interest rate of 6.5% compounded daily? help me plz someone

amelia is going to invest in an account paying on interest rate of 6.5% compounded-example-1
User RAAC
by
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1 Answer

3 votes

Answer:

$9,763

Explanation:

Using the compund interest formula;

A = P(1+r)^t

A is the amount = $10,200

rate r = 6.5%= 0.065

time t = years

n = 1/365 ((daily compounding)

Substitute into the formula and get Pincipal P

10,200 = P(1+0.065(365))^5/365

10200 = P(1+23.725)^0.01369

10200 = P(24.725)^0.01369

10200 = P(1.0448)

P = 10200/1.0448

P = 9,762.6

Hence the amount invested is $9,763 to nearest dollars

User Shahnaz
by
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