## coolaidd Group Title You invest an initial \$2,000 in an account that has an annual interest rate of 6%, compounded daily. How much money will you have in the account after 15 years? Round your answer to the nearest whole number 2 years ago 2 years ago

1. Limitless

What formula or formulae do you think might be appropriate here?

2. coolaidd

t=10, so p(10)=430*1.009^10?

3. Limitless

Apply this formula: $A= P\left(1 + \frac{r}{n}\right)^{nt}$ * A = final amount * P = principal amount (initial investment) * r = annual nominal interest rate (as a decimal, not in percentage) * n = number of times the interest is compounded per year * t = number of years

4. coolaidd

do i get 1.06

5. Limitless

No, you may've mistyped something into your calculator.

6. coolaidd

for the first step

7. Limitless

Oh, for $$1+\frac{r}{n}$$? Not quite. You have to do $$1+\frac{0.06}{365}$$ since the interest is compounded every day and there are $$365$$ days in the year.

8. Hero

Looks like someone already helped you?