SOLUTION: Can anyone help me figure the interest earned for a word problem, please?
A money market fund pays 14% annual interest compounded daily. What is the value of $10,000 invested in
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A money market fund pays 14% annual interest compounded daily. What is the value of $10,000 invested in
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Question 313872: Can anyone help me figure the interest earned for a word problem, please?
A money market fund pays 14% annual interest compounded daily. What is the value of $10,000 invested in this fund after 15 years?
Any help would be appreciated! Answer by ankor@dixie-net.com(22740) (Show Source):
You can put this solution on YOUR website! A money market fund pays 14% annual interest compounded daily.
What is the value of $10,000 invested in this fund after 15 years?
:
The compound interest equation
A = P(1+)^nt
where
A = amt after t years
P = initial amt (10000)
r = interest rate in decimals, (.14)
n = time compounded per year, (365)
t = time in yrs, (15)
:
A = 10000(1+)^(365*15)
:
A = 10000*(1.00038356)^5475
:
A = 10000*8.1628825
:
A = $81,628.83
