SOLUTION: find the future value of an investment if the present value is $5806.91 and the investment earns 9.57% apr for 8 years compounded daily a. $2,700.81 b. $12,485.25 c. $2,795.2

Algebra ->  Trigonometry-basics -> SOLUTION: find the future value of an investment if the present value is $5806.91 and the investment earns 9.57% apr for 8 years compounded daily a. $2,700.81 b. $12,485.25 c. $2,795.2      Log On


   

Question 1153422: find the future value of an investment if the present value is $5806.91 and the investment earns 9.57% apr for 8 years compounded daily
a. $2,700.81
b. $12,485.25
c. $2,795.20
d. $7,886.19
Answer by MathLover1(20850) About Me  (Show Source):
You can put this solution on YOUR website!

Compound Interest Formula
FV+++=+++PV+%281++%2B++r+%2F+n%29%5E%28Yn%29
where
PV=5806.9+is the present value
r=0.0957 (is decimal value of the annual interest rate),
Y=8 is the number of years invested
n+=365 is the number of compounding periods per year.
FV= is the future value, meaning the amount the principal grows to after 8 years
FV++=++PV%281+%2B+r%2Fn%29%5E%28Yn%29
FV+=+5806.9+%281+%2B0.0957+%2F365+%29%5E%288%2A365%29
FV+=+5806.9+%281.000262192+%29%5E%282920%29
FV+=++5806.9+%282.1500714%29
FV+=+12485.24961266
FV+=+12485.25
=> answer: b. $12485.25