Suppose that you have $6,000 to invest. Which investment yields the greater return over a 10 year period: 7.44% compounded daily
or 7.5% compounded quarterly? Find the total amount of the investment after 10 years if $6,000 is invested at 7.44% compounded daily. $ (Round to the nearest cent as needed.) help me please im failing
Hi Here is you answer mate But don’t forget to mark me the brainliest
Plug the applicable numbers into the compound interest formula and see which is more. A = p(1+r/n)nt A = future amount p =principal investment r = interest rate as a decimal n = number times compounded per year t = time in years
A = 5000(1+.0743/365)365(10) = 5000(1.000203562)3650 = $10,510.38
A = 5000(1+.075/4)4(10) = 5000(1.01875)40 = $10,511.75
As you can see these are practically equal, but the 7.5% quarterly is more.
Megan's solution isn't correct. The first mistake: she subtracted 5x from the right-hand side of the equation, but added 5x to the left-hand side. The second mistake: she divided the right-hand side of the equation by 11, but didn't divide the left-hand side.
