If $1500 is invested at an interest rate of 2.5% per year, compounded daily, fin

Algebra
Tutor: None Selected Time limit: 1 Day

If $1500 is invested at an interest rate of 2.5% per year, compounded daily, find the value of the investment after the given number of years. (Round your answers to the nearest cent.)

(a) 2 years
 

(b) 3 years
 

(c) 6 years
Jul 17th, 2015

Thank you for the opportunity to help you with your question!

Daily Compound Interest = Principal(1+Rate/365)^(365∗Time) - Principal 

a) I =1500(1+2.5/365)^(365*2) - 1500 = 217357.2324$

Value of investment = principal+interest = 218857 $

b) similarly time=3 years

I =1500(1+2.5/365)^(365*3) -1500 = 2642099.89$

Value of investment =principal+interest= 2643600$

c) t= 6years

I =1500(1+2.5/365)^(365*6) -1500 = 4659078751$

Value of investment =principal+interest= 4659080251 $

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 17th, 2015

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Jul 17th, 2015
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Jul 17th, 2015
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