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Use the formula for computing future value using compound interest to determine the value of an account at the end of 6 years if a principal amount of $2,500 is deposited in an account at an annual interest rate of 7% and the interest is compounded daily. (Assume there are 365 days in a year)
The amount after 6 years will be $?
 one year ago
 one year ago
Use the formula for computing future value using compound interest to determine the value of an account at the end of 6 years if a principal amount of $2,500 is deposited in an account at an annual interest rate of 7% and the interest is compounded daily. (Assume there are 365 days in a year) The amount after 6 years will be $?
 one year ago
 one year ago

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waterineyesBest ResponseYou've already chosen the best response.1
I don't know the formula for this.. If you tell me the formula, then I might help you...
 one year ago

monroe17Best ResponseYou've already chosen the best response.1
I have a bunch of formulas... idk what one to use? there is.. I=prt A=P(1+rt) P+I/n A=P(1+(r/m))^n
 one year ago

waterineyesBest ResponseYou've already chosen the best response.1
I think we should go with last one...
 one year ago

monroe17Best ResponseYou've already chosen the best response.1
How do I use it.. I have the rate.. which is 0.07 Principal is 2500... what is m and n?
 one year ago

monroe17Best ResponseYou've already chosen the best response.1
A=2500(1+(0.07)(6))? or is time 365*6= 2190?
 one year ago

monroe17Best ResponseYou've already chosen the best response.1
A=2500(1+(0.07)(2190)
 one year ago

waterineyesBest ResponseYou've already chosen the best response.1
No, we will go with last one....
 one year ago

monroe17Best ResponseYou've already chosen the best response.1
last formula or the 2190 one?
 one year ago

waterineyesBest ResponseYou've already chosen the best response.1
Last formula... Wait, I explain the formula first to you... Please wait...
 one year ago

waterineyesBest ResponseYou've already chosen the best response.1
Formula is: \[A = P(1 + \frac{r}{n})^{n.t}\] This is the formula for calculating amount in case of Compound Interest...
 one year ago

waterineyesBest ResponseYou've already chosen the best response.1
Here, A = Amount (that we have to calculate) P = Principle Amount.. (P = 2500) r = Annual Rate of Interest (in Decimal) (r = 0.07) n = Number of Times the Interest is compounded per year..(n = 365) t = Amount of Money accumulated after n years, Including Interest.. (t = 6) Put these values in the formula given above and solve for A.. Can you do it??
 one year ago

monroe17Best ResponseYou've already chosen the best response.1
so to the nearest cent would that be 3804.75
 one year ago

waterineyesBest ResponseYou've already chosen the best response.1
How did you solve it show me the steps so that I can verify it...
 one year ago

monroe17Best ResponseYou've already chosen the best response.1
A=2500(1+(0.07/365)^365*6 A=2500(1+(0.07/365)^2190 A=2500(1.5219) A=3804.75
 one year ago

waterineyesBest ResponseYou've already chosen the best response.1
Thanks for solving it for me.. See, I also don't know the formula but now I know.. Thanks for increasing my knowledge...
 one year ago

monroe17Best ResponseYou've already chosen the best response.1
lol, so do you think I did it right?
 one year ago
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