Compound Interest

Question

An Investment is worth R90 749.30 after ten years at 9% p.a, compounded daily (lets assume 365 days in every year). What is the present value of the investment?

Answer 1

A = p(1+r/n)^nt

A = future value

p = principal investment = 90749.30

r = interest rate = 9% = .09

n = number times compounded per year = 365

t = time in years = 10

 

A = 90749.3(1 + .09/365)^365(10)

A = 223,182.50