A= p(1+ (r/n))^nt where P is the amount deposited, A is the value of the money after t years, r is the annual interest rate as a decimal, and n is the number of compounding periods per year. A computer network specialist deposits $2800 into a retirement account that earns 7.5% annual interest, compounded daily. What is the value of the investment after 25 years?

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2022-09-02

A = p ( 1 + r n ) n t where P is the amount deposited, A is the value of the money after t years, r is the annual interest rate as a decimal, and n is the number of compounding periods per year. A computer network specialist deposits $2800 into a retirement account that earns 7.5% annual interest, compounded daily. What is the value of the investment after 25 years?

Answer & Explanation

Carmelo Peck

Carmelo Peck

Beginner2022-09-03Added 12 answers

Given
P = $ 2800 γ 7.5 % = 0.075 t = 25  years
n= compouded daily =365
A = P ( 1 + ( r n ) ) n × t A = 2800 ( 1 + 0.075 365 ) 365 × 25 A = 2800 ( 1 + 0.00020548 ) 9125 A = 2800 ( 1.00020548 ) 9125 A = 2800 × 6.5196 = 18254.88
Value is $ 18254.88

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