John has $10,000 in a savings account that pays 5% APR compounded daily. How much money will he have a the end of 5 years?
We use the formula:
A=P(1+r/365)^365n
where
A=future value
P=present value
r=rate of interest
n=time period.
A=$10,000*(1+0.05/365)^(365*5)
=$10,000*1.284003432
which is equal to
=$12840.03(Approx).
John has $10,000 in a savings account that pays 5% APR compounded daily. How much money...