SOLUTION: Please help me I have tried to figure out the amount for daily but all my answers was wrong. Please show step by step. Thanks If 36500 dollars is invested at an interest rate of

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Question 998636: Please help me I have tried to figure out the amount for daily but all my answers was wrong. Please show step by step. Thanks
If 36500 dollars is invested at an interest rate of 6 percent per year, find the value of the investment at the end of 5 years for the following compounding methods.
(d) Daily:
Your answer is
Found 2 solutions by Boreal, MathLover1:
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
36500(1+(.06)/365))^1825; the parentheses equals 1.3498. Without rounding, multiply out
$49,268.63
Rule of 72 would expect doubling in 12 years
(Rule of 40-increases by half in 40/6 or about 6 years. The answer makes sense.

Answer by MathLover1(20850) About Me  (Show Source):
You can put this solution on YOUR website!
you are given:
P+=36500 dollars
r+=+6 %
t+=+5 years
n+=+365
so, you have:

Periodic compound interest:



Where

represents the Future Value

represents the Present Value (amount invested)

represents the annual interest rate expressed as a decimal

represents the number of compounding periods per year (1 for annual, 2 for semiannual, 12 for monthly, etc.)

represents the number of years the money will be invested.







Continuous Compounding:



as above

is the base of the natural logarithms