You invest $1000 at 2.3% APR compounded daily how much money will you have after 4 years?
Final answer:
The final amount of money after 4 years of investing $1000 at 2.3% APR compounded daily is approximately $1093.99.
Explanation:
To calculate the final amount of money after 4 years, we can use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal amount (initial investment), r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.
In this case, P = $1000, r = 2.3% (or 0.023 as a decimal), n = 365 (daily compounding), and t = 4. Plugging these values into the formula, we have:
A = $1000(1 + 0.023/365)^(365*4)
Calculating this expression, we find that the final amount after 4 years is approximately $1093.99.
What is the final amount of money after 4 years of investing $1000 at 2.3% APR compounded daily? The final amount after 4 years is approximately $1093.99.