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vodka [1.7K]
3 years ago
5

$16000 is invested at an APR of 3.5% compounded daily. Write a numerical expression that would compute the value of the investme

nt after 30 years.
Business
1 answer:
babunello [35]3 years ago
5 0

Answer:

The correct answer is $45,720.

Explanation:

According to the scenario, the given data are as follows:

Payment (pmt) = $16,000

Rate of interest (R)= 3.5% = .035

Time (t) = 30 years

Time (compounded daily ) (n) =  365days

(nt) = 365 ×30 = 10950 days

So, we can calculate future value after 30 years by using following formula:

FV = pmt × (1 + r/n )^{nt}

= $16,000 × (1 + .035/365 )^{10950}

= $16,000 × 2.8575

= $45,720

Hence, the future value after 30 years will be $45,720.

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