Question

PLEASE HELP LOL...

Use the compound interest formula A=P(1+r/n)nt

If $10,000 is invested at 2 percent daily for 5 years, what is the amount at the end of the term?
A:$11,052
B:$11,051
C:$11,049
D:$11,046

Answer 1

A)$11,052

Explanation:

10000(1+.02/365)^365(5)

10000(1.00005479452)^1825

10000(1.10516788922)

11051.6788922

Approximately 11052

Answer 2

A:$11,052

Explanation:

you are given the formula for compound interest:

A=P(1+r/n) ^ (nt)

where

P = principal amount = $10,000

r = interest rate = 2% = 0.02

n = number of times compounded in a year = 365 (because there are 365 days in a year and interest is compounded daily)

t = number of years = 5

substituting this into the equation,

A=P(1+r/n) ^ (nt)

A=10,000 [ 1+(0.02/365) ] ^ (365 x 5)

A=10,000 [ 1.000054795) ] ^ (365 x 5)

= $11,051.68

= $11,052 (rounded to nearest dollar)