Question

$16000 is invested at an APR of 3.5% compounded daily. Write a numerical expression that would compute the value
of the investment after 30 years.
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Answer 1

Answer:

The value of the investment after 30 years is $\ 45,720.12$  

Step-by-step explanation:

we know that    

The compound interest formula is equal to  

$A=P(1+\frac{r}{n})^{nt}$  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

$t=30\ years\\ P=\ 16,000\\ r=3.5\%=3.5/100=0.035\\n=365$  

substitute in the formula above  

$A=16,000(1+\frac{0.035}{365})^{365*30}$  

$A=16,000(1+\frac{0.035}{365})^{10,950}$  

$A=\ 45,720.12$