math problem?
Supposed you invested $20000 in an account that paid 5 percent annually and was compounded daily. How much would you have in the account after 25 years?
Supposed you invested $20000 in an account that paid 5 percent annually and was compounded daily. How much would you have in the account after 25 years?
Comments
A = P(1 + r/n)^nt
A = 20,000(1 + 0.05/365.25)^(365.25)(25) = 20,000(1.000137)^9131.25 = $69.869.40
20,000 * 1.05^25 = $67727.10