## anonymous 4 years ago 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

1. anonymous

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

2. anonymous

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

3. anonymous

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. anonymous

do i get 1.06

5. anonymous

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

6. anonymous

for the first step

7. anonymous

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?