This is the question,
How much more money will Ashlee have if she invests her dollar per day for 52 years at 15% interest instead of 13% interest? Round to the nearest dollar.
I have try this question on my calculator but is wrong.
Can somebody tell me how you get the answer with step by step.
At 15%, Ashlee will have accumulated =$5,926,856.69 @ a $1 per day for 52 years.
At 13%, Ashlee will have accumulated =$2,416,312.88 @ a $1 per day for 52 years.
The difference will be =$5,926,856.69 - $2,416,312.88 =$3,510,543.81.
This is the formula you would use to calculate this:
FV=P{[1 + R]^N - 1/ R}=FV OF $1 PER PERIOD, Where R=Interest rate per period, N=number of periods, P=periodic payment, FV=Future value.
I will show you how to calculate the first one @ 15% only. Then you try and see if you can get the second one @ 13% right.
FV = $1 x {[ 1 + 0.15/365]^(52*365) - 1 / [0.15/365]}
FV = $1 x {[1.0004109589]^18,980 - 1 / [0.0004109589]}
FV = $1 x {[ 2,435.69] / [0.0004109589]}
FV = $1 x 5,926,856.69
FV = $5,926,856.69.
GOOD LUCK TO YOU. IF YOU HAVE ANY PROBLEMS, LET ME KNOW.
