can someone help me with this problem for this problem you will use 0.02/365 for your interest. You deposit $1000 at 2% for 20 years, compounded daily.
i = .02/365 = .....
n = 20(12) = 240
using
amount = principal(1 + i)^n
amount = 1000(1 + .02/365)^240
my keystrokes on my calculator are:
.02÷365
=
+ 1
=
yx
240
=
x 1000
=
to get $1013.23
To solve this problem, we need to use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = the final amount
P = the principal amount (initial deposit)
r = annual interest rate
n = number of times interest is compounded per year
t = number of years
In this case:
P = $1000
r = 0.02 (2% expressed as a decimal)
n = 365 (compounded daily)
t = 20 years
First, let's calculate the value inside the parentheses:
(1 + r/n) = (1 + 0.02/365)
Now we raise this value to the power of nt:
(1 + r/n)^(nt) = (1 + 0.02/365)^(365*20)
Using a calculator or a spreadsheet, you can evaluate this expression:
(1 + 0.02/365)^(365*20) ≈ 1.48594
Finally, multiply this value by the principal amount to find the final amount:
A = $1000 * 1.48594
A ≈ $1,485.94
Therefore, after 20 years of daily compounding at a 2% interest rate, your $1000 deposit will grow to approximately $1,485.94.