Question

Find the amount of interest on $1,500 invested for 20 days at 6.75%, compounded daily. $_____

Answer 1

The required amount of interest is $5538.

Explanation:

Given : $1,500 invested for 20 days at 6.75%, compounded daily.

To find : The amount of interest ?

Solution :

Applying compound interest formula,

`A=P(1+r)^t`

Where, A is the amount

P is the principal P=$1500

r is the interest rate r=6.75%=0.0675 compounded daily

t is the time t=20 days

Substitute the value in the formula,

`A=P(1+r)^t`

`A=1500(1+0.0675)^(20)`

`A=1500(1.0675)^(20)`

`A=1500* 3.69`

`A=\$5538`

Therefore, The required amount of interest is $5538.