+0  
 
+1
195
1
avatar

You deposit 1700 into a savings account for 10 years. How much money will be in the account if the account earns 6% compounded daily (using bankers rule?

 

My friend and I are at a disagreement on what the final value should be when multiplying. I figured that since the bankers rule is 360 days, and its 10 years straight it would look like this:

1700(0.06)(10). 

 

Then again we are thinking it is too easy to be that. can someone please help? 

 

Thanks! its for a project due on Tuesday!!

CMN and JAS

Guest Apr 10, 2017
Sort: 

1+0 Answers

 #1
avatar+77081 
+1

 

Using

 

A = P (1 + r/n)nt

 

Where P  is the invested amt, r is the yearly interest rate, n is the number of compoundings per year, t is the number of years  and A is the acumulated amt at the end

 

1700 (1 + .06/360)360*10  ≈ $3097.45 

 

 

 

cool cool cool

CPhill  Apr 10, 2017

11 Online Users

avatar
We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners.  See details