Question

Use the appropriate compound interest formula to compute the balance in the account after the stated period of time



​$24 comma 00024,000
is invested for
22
years with an APR of
66​%
and daily compounding.

Answer 1

We assume you're investing $24,000 for 2 years at an APR of 6%.

The appropriate formula is

... A = P(1 +r/n)^(nt)

where P = 24,000, r = 0.06, n = 365, t = 2.

... A = 24,000(1 +.06/365)^(365*2) ≈ 27,059.66

The balance will be $27,059.66.