Question

If you invest $15,000 today at a 6% interest compounded daily, what will be your ending value after 12 years?

Answer 1

Answer:

Amount after 12 year will be $30762.16

Explanation:

We have given amount invested = $15000

Rate of interest r = 6 %

Time t = 12 years

As investment is compounded daily

So rate of interest $=\frac{6}{365}=0.0164$ %

As 1 year = 365 days

So 12 year = 12×365 = 4380 days

We know that future value is given by

$A=P(1+\frac{r}{100})^n$

So $A=15000\times (1+\frac{0.0164}{100})^{4380}=30762.958$$

So amount after 12 year will be $30762.16