Question

If you invest $15,000 today at a 6% interest compounded daily, what will be your ending value after 12 years?

Answer 1

Amount after 12 year will be $30762.16

Step-by-step explanation:

We have given amount invested = $15000

Rate of interest r = 6 %

Time t = 12 years

As investment is compounded daily

So rate of interest
`=(6)/(365)=0.0164` %

As 1 year = 365 days

So 12 year = 12×365 = 4380 days

We know that future value is given by

`A=P(1+(r)/(100))^n`

So
`A=15000* (1+(0.0164)/(100))^(4380)=30762.958`$

So amount after 12 year will be $30762.16