If you invested a penny on Jan 1, 1776 at 5.5% interest compounded daily, how much would you have on Jan 1, 2020?
Mathematics · Middle School · Mon Jan 18 2021
llm
Answered on
Given:
Principal amount ( P ) = $0.01
Interest rate ( r ) = 5.5% or 0.055 (divided by 100)
Compounded daily ( n ) = 360 (banker's rule)
Term ( t )
= 2020 - 1776
=244
Formula for Compound Interest:
A = P ( 1 + r/n)^nt
A = ($0.01)(1 + 0.055/360)^(360)(224)
A = ($0.01)(1.000152778)^(80,640)
A = $2,239.23
Final answer:
A = $2,239.23