## Related questions with answers

Question

Use the appropriate compound interest formula to compute the balance in the following accounts after the stated period of time.

$\$ 2000$ is invested for $5$ years with an $\mathrm{APR}$ of $3 \%$ and daily compounding.

Solution

VerifiedAnswered 2 years ago

Answered 2 years ago

Step 1

1 of 3To get the accumulated value of an investment of $\textcolor{#c34632}{\$2,000}$ for $\textcolor{#c34632}{5 \ \text{years}}$ years at an interest rate of $\textcolor{#c34632}{3\%}$ **compounded daily**, we will use this formula:

$\begin{aligned} A = P \left ( 1 + \dfrac{APR}{n} \right )^{nY} \end{aligned}$

where $A$ is the accumulated balance after $Y$ years, $P$ is the starting principal, $APR$ is the annual percentage rate in decimal form, $n$ is the compounding periods per year, and $Y$ is the time in years.

## Create a free account to view solutions

By signing up, you accept Quizlet's Terms of Service and Privacy Policy

## Create a free account to view solutions

By signing up, you accept Quizlet's Terms of Service and Privacy Policy

## Recommended textbook solutions

#### Statistical Techniques in Business and Economics

15th Edition•ISBN: 9780073401805 (11 more)Douglas A. Lind, Samuel A. Wathen, William G. Marchal1,236 solutions

#### Using and Understanding Mathematics: A Quantitative Reasoning Approach

6th Edition•ISBN: 9780321914620Jeffrey O. Bennett, William L. Briggs2,970 solutions

#### Financial Algebra

1st Edition•ISBN: 9780538449670 (1 more)Richard Sgroi, Robert Gerver2,606 solutions

#### Financial Algebra: Advanced Algebra with Financial Applications

2nd Edition•ISBN: 9781337271790Richard Sgroi, Robert Gerver3,016 solutions

## More related questions

1/4

1/7