Question

$6,000 for 6 years at 8½% compounded daily will grow to ?

Answer 1

When an amount $P$  is invested for $t$ years during which it earns an interest of $r$ dollars compounded  $m$ times per year, the formula to calculate the amount that investment grows to after $t$ years is,

$A=P(1+\tfrac{r}{m})^{mt}.$

Assuming that a years has 365 days ,the values for each of these variables is given as follows, $m=365$ ,$t=6$$r=8.5\%=0.085 .$ The value of the investment after 6 years is then calculated as shown below,

$A=P(1+\tfrac{r}{m})^{mt}\\A=6000(1+\tfrac{0.085}{365})^{(365\times 6)}\\A=9991.15$

The investment grows to reach  $9991.15 in 6 years.