Given:
Principal value = $1500
Rate of interest = 7% per annum compounded daily
Time = 2 years.
To find:
The amount after 2 years.
Solution:
Formula for amount:
Where, P is principal, r is the rate of interest in decimals, n is the number of time interest compounded in an year and t is the number of years.
We know that 1 year is equal to 365 days and the interest compounded daily. So, n=365.
Substituting in the above formula, we get
Using calculator, we get
The amount after two years is $1,725.39. Therefore, the correct option is (c).