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KJ4UTS

  • one year ago

What is the value of an investment of $6,835.69 at 3.88% interest compounded daily for 6 years?

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  1. KJ4UTS
    • one year ago
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  2. anonymous
    • one year ago
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    \[p _{kt} = p _{0}(1+\frac{ r }{ k })^{kt}\] we can re write it as \[\frac{ p_{kt} }{ (1+\frac{ r }{ k })^{kt} } = p _{0}\]

  3. anonymous
    • one year ago
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    so \[6835.69/(1+\frac{ 0.0388 }{ 365 })^{365*6}\] = 5416.07

  4. KJ4UTS
    • one year ago
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    @Lily2913 how could it be less than the original starting amount?

  5. anonymous
    • one year ago
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    sorry miss read.. I thought you wanted the initial value with the total being 6835.69

  6. anonymous
    • one year ago
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    in that case it would be \[P _{kt} = 6835.69(1+\frac{ 0.0388 }{ 365 })^{365*6}\]

  7. anonymous
    • one year ago
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    8627.416

  8. KJ4UTS
    • one year ago
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    oh ok that's what I got too thanks for your help :)

  9. anonymous
    • one year ago
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    np. sorry about the mix up.

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