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How much should be invested at 7% compounded daily for 15 years to make $200,000?

Sagot :

Lanuel

The amount of money that should be invested at 7% compounded daily is $199,421.68.

How to calculate compound interest.

Mathematically, compound interest is given by this formula:

[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]

Where:

  • A is the future value.
  • P is the principal.
  • R is the interest rate.
  • T is the time measured in years.
  • n is the number of times compounded.

Given the following data:

Future value = $200,000.

Interest rate = 7% = 0.07.

Time = 15 year.

Substituting the given parameters into the formula, we have;

[tex]200000=P(1+\frac{0.07}{365} )^{ 15}\\\\200000=P(1+0.00019)^{15}\\\\200000=P(1.00019)^{15}\\\\200000=1.0029P\\\\P=\frac{200000}{1.0029}[/tex]

P = $199,421.68.

Read more on interest here: brainly.com/question/24341207

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