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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
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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

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