aahhmm
Sep 25, 2010, 08:05 AM
How much it will take $10,000 to grow to $40,000 if the investment earn interst of 6% per year compounded daily
galactus
Sep 25, 2010, 08:22 AM
The formula for interest is:
A=P\left(1+\frac{r}{n}\right)^{nt}
Where P=amount invested
r=rate of interest as a decimal
n=# of compundings in a year.
t=# of years.
I believe 360 is used for n, instead of 365, in many cases.
You may have to verify that.
40000=10000\left(1+\frac{.06}{360}\right)^{360t}
solve for t.