Question

Mario invested $5100 at 13%

to be compounded daily. What will be the value of Mario's investment in 2 years? Round your answer to the nearest cent, if necessary. Note: 365 days in a year and 30 days in a month.

Answer 1

Amount = $6614 and 19 cent

Explanation:

Formula for compound interest is

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

Compounded daily

So n= 365*2= 730

T= 2

r= 0.13

P= 5100

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

A= 5100(1+0.13/730)^(730*2)

A= 5100(1+1.78082*10^-4)^(1460)

A= 5100(1.000178082)^1460

A= 5100(1.2969)

A= 6614.19

Amount = $6614 and 19 cent