Question

How much should be invested at 7% compounded daily for 15 years to make $200,000?

Answer 1

The amount of money that should be invested at 7% compounded daily is $199,421.68.

How to calculate compound interest.

Mathematically, compound interest is given by this formula:

$A=P(1+\frac{r}{n} )^{nt}$

Where:

• A is the future value.

• P is the principal.

• R is the interest rate.

• T is the time measured in years.

• n is the number of times compounded.

Given the following data:

Future value = $200,000.

Interest rate = 7% = 0.07.

Time = 15 year.

Substituting the given parameters into the formula, we have;

$200000=P(1+\frac{0.07}{365} )^{ 15}\\\\200000=P(1+0.00019)^{15}\\\\200000=P(1.00019)^{15}\\\\200000=1.0029P\\\\P=\frac{200000}{1.0029}$

P = $199,421.68.

Read more on interest here: brainly.com/question/24341207