Question

$16000 is invested at an APR of 3.5% compounded daily. Write a numerical expression that would compute the value of the investment after 30 years.

Answer 1

The correct answer is $45,720.

Step-by-step explanation:

According to the scenario, the given data are as follows:

Payment (pmt) = $16,000

Rate of interest (R)= 3.5% = .035

Time (t) = 30 years

Time (compounded daily ) (n) = 365days

(nt) = 365 ×30 = 10950 days

So, we can calculate future value after 30 years by using following formula:

FV = pmt ×
`(1 + r/n )^(nt)`

= $16,000 ×
`(1 + .035/365 )^(10950)`

= $16,000 × 2.8575

= $45,720

Hence, the future value after 30 years will be $45,720.