Finite Math and Applied Calculus (6th Edition)

Published by Brooks Cole
ISBN 10: 1133607705
ISBN 13: 978-1-13360-770-0

Chapter 2 - Section 2.2 - Compound Interest - Exercises - Page 142: 5

Answer

$\$ 13,839.91$

Work Step by Step

The future value of an investment of $\\\\$ PV=10,000 dollars earning interest $\\$ at an annual rate of r=$6.5\%=0.065\\$ compounded (reinvested) m$=365$ times per year$\\$ for a period of t$=10$ years is$\\$ $FV=PV(1+\displaystyle \frac{r}{m})^{mt}\\$ $=10,000(1+\displaystyle \frac{0.065}{365})^{365\cdot 10}\approx$13839.9059974$\\$ rounded to the nearest cent: $\$ 13,839.91$
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