SOLUTION: Kelly invests $3000 in an account that earns 12% interest per year. Find the amount due at the end of 5 years if the sum is compounded daily

Question 1090432: Kelly invests $3000 in an account that earns 12% interest per year. Find the amount due at the end of 5 years if the sum is compounded daily
Found 2 solutions by Boreal, Alan3354:
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
This is P=Po(1+0.12/365)^1825, divide interest by compoundings and raise to the number of compoundings, rounding at the end.
$5465.82
check with annual compounding, which will be less but in the range. It is $5287.03
Answer by Alan3354(69443) (Show Source): You can put this solution on YOUR website!
Kelly invests $3000 in an account that earns 12% interest per year. Find the amount due at the end of 5 years if the sum is compounded daily
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I'll do monthly compounding.
5 years = 60 months
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12%/year = 1%/month
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FV = PV*(1 + 0.01)^60
FV = 3000*1.01^60
FV = 5450.09
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You do the daily compounding.

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