Ask Question
5 September, 18:27

Use the compound interest formula, the formula A equals P times 1 plus r over n to the n times t power. If $10,000 is invested at 2 percent daily for 5 years, what is the amount at the end of the term?

A$11,052

B $11,049

C $11,046

D $11,051

+1
Answers (1)
  1. 5 September, 20:41
    0
    Option A is the correct answer.

    Step-by-step explanation:

    Initial amount deposited into the account is $10000. This means that the principal is

    P = 10000

    It was compounded daily. This means that it was compounded 365 times in a year. So

    n = 365

    The rate at which the principal was compounded is 2%. So

    r = 2/100 = 0.02

    It was compounded for 5 years. So

    t = 5

    The formula for compound interest is

    A = P (1+r/n) ^nt

    A = total amount in the account at the end of t years. Therefore

    A = 10000 (1+0.02/365) ^365*5

    A = 10000 (1.000055) ^1825

    A = $11052
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Use the compound interest formula, the formula A equals P times 1 plus r over n to the n times t power. If $10,000 is invested at 2 percent ...” in 📙 Mathematics if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers