Find the principal P that will generate the given future value A, where A=$11000 at 9% compounded daily for 10 years.

MISA6zh

MISA6zh

Answered question

2022-11-13

Find the principal P that will generate the given future value A, where A = $ 11000 at 9% compounded daily for 10 years.

Answer & Explanation

embutiridsl

embutiridsl

Beginner2022-11-14Added 26 answers

For compounding daily:
Time period (n) = 365
Given, r = 9 % = 9 100 = 0.09
So,
P ( 1 + r n ) n t = A P ( 1 + 0.09 365 ) 365 × 10 = 11000 P = 11000 ( 1 + 0.09 365 ) 3650 P = 4472.76

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