slaggingV
2021-08-04
Calculate the amount that follows the given investment. invested at compounded daily after a period of 4 years:
After 4 years, the investement results in how much $?
Rivka Thorpe
Beginner2021-08-10Added 3 answers
Step 1
Compound interest:
In the case of compound interest, interest is reapplied to the principal amount in order to earn interest on that addition during the subsequent compounding period. In other words, compound interest will provide interest on interest. The interest payments will change in the time period in which the initial sum of money stays in the bank or with the barrower.
The general formula for compound interest is,
Where:
A represents the investment loan's projected value, including the loan.
P is the principle amount,
r is the annual interest rate in decimals,
n is the number of times interest is compounded per year,
t is the time of years the money is invested or borrowed.
Step 2
Find the investment results after 4 years:
The invested amount is at compound daily interest.
The goal is to learn the results of the investment after four years.
Here,
The principal amount is
Annual interest rate is
The number of times interest is compounded per year is daily. That is,
The number of years the money is invested or time period is years.
The investment result after 4 years is obtained as from the calculation given below:
Step 3
Answer:
The investment result after 4 years is
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