Answer: $2,466.45
Step-by-step explanation:
Hi, to answer this question we have to apply the compounded interest formula:
A = P (1 + r/n) nt
Where:
A = Future value of investment (principal + interest)
P = Principal Amount
r = Nominal Interest Rate (decimal form, 3.5/100= 0.035)
n= number of compounding periods in each year (365)
Replacing with the values given
3,500= P (1+ 0.035/365)^365(10)
Solving for P
3,500= P (1.00009589)^3650
3,500/ (1.00009589)^3650 =P
P = $2,466.45
