If $1500 is invested at an interest rate of 2.5% per year, compounded daily, find the value of the investment after the given number of years:

Question

Round to the nearest cent

 

2 years_________

 

3 years_________

 

6 years_________

Answer 1

After 2 years = 1576.90

After 3 years = 1616.82

After 6 years = 1742.74

 

Formula A₀(1+r/n)^nt

A₀ = Amount invested

r = rate in %

n = compounded daily=365; compounded weekly=52; compounded monthly=12; compounded quarterly=4; yearly=1

t = time in years