Question

Find the amount accumulated if 50000 is invested for 20 years at a rate of 7% compounded daily

Answer 1

The formula for compound interest is given by :

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

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

Here we are given that

P=50000

time(t) = 20 years

rate =7%=0.07

n=365 ( daily)

Plugging in the values in the given formula we get

$A=50000(1+\frac{0.07}{365} ^(365*20)$

Answer : A=202732.78381....