KJ4UTS one year ago What is the value of an investment of \$6,835.69 at 3.88% interest compounded daily for 6 years?

1. KJ4UTS

2. anonymous

$p _{kt} = p _{0}(1+\frac{ r }{ k })^{kt}$ we can re write it as $\frac{ p_{kt} }{ (1+\frac{ r }{ k })^{kt} } = p _{0}$

3. anonymous

so $6835.69/(1+\frac{ 0.0388 }{ 365 })^{365*6}$ = 5416.07

4. KJ4UTS

@Lily2913 how could it be less than the original starting amount?

5. anonymous

sorry miss read.. I thought you wanted the initial value with the total being 6835.69

6. anonymous

in that case it would be $P _{kt} = 6835.69(1+\frac{ 0.0388 }{ 365 })^{365*6}$

7. anonymous

8627.416

8. KJ4UTS

oh ok that's what I got too thanks for your help :)

9. anonymous

np. sorry about the mix up.