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3 years ago

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John Smith has found a short-term investment opportunity. He can invest $6,000 at 0.75 % interest for 15 days. How much intere

st will he earn on this investment if the interest is compounded daily? Click the icon to view the table of compound interest of $100 compounded daily.
Answer: The Interest is $ . (Round to the nearest cent as needed.)

1 answer:

maxonik [38]3 years ago

6 0

Answer:

$45.16

Step-by-step explanation:

Given:

Principle amount = $6,000

Rate of interest, r = 0.75%

Duration = 15 days

Since, the interest is compounded daily

Future value = $\textup{Present value}\times(1+\frac{r}{n})^n$

or

Future value = $6000\times(1+\frac{0.0075}{15})^15$

or

Future value = $6045.16

Therefore,

the interest earned = Future value - Principle amount

or

The interest earned = $6045.16 - $6000 = $45.16

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