Question

Find the amount of interest on $1,500 invested for 20 days at 6.75%, compounded daily. $_____

Answer 1

Answer:

The required amount of interest is $5538.  

Step-by-step explanation:

Given : $1,500 invested for 20 days at 6.75%, compounded daily.

To find : The amount of interest ?

Solution :

Applying compound interest formula,

$A=P(1+r)^t$

Where, A is the amount

P is the principal P=$1500

r is the interest rate  r=6.75%=0.0675 compounded daily

t is the time t=20 days

Substitute the value in the formula,

$A=P(1+r)^t$

$A=1500(1+0.0675)^{20}$

$A=1500(1.0675)^{20}$

$A=1500\times 3.69$

$A=\ 5538$

Therefore, The required amount of interest is $5538.