How much would an initial investment of $500 be worth in 90 days if it earned 3% daily?
I am sure you meant
3% per annum, compounded daily
i = .03/365 = .000082191
amount = 500(1.000082191)^90 = 503.71
If you actually meant 3% per day, wow, ...
amount = 500(1.03)^90 = 7150.23
sharon is that you?
To calculate the value of an initial investment of $500 with a daily interest rate of 3% earned over a period of 90 days, we can use the compound interest formula.
The formula for compound interest is:
Future Value = Principal Amount * (1 + Interest Rate)^(Number of Compounding Periods)
In this case, the principal amount is $500, and the interest rate is 3% or 0.03, since interest rates are typically expressed in decimal form. The number of compounding periods is 90 days.
To calculate the future value of the investment, we substitute these values into the formula:
Future Value = $500 * (1 + 0.03)^(90/365)
Calculating (1 + 0.03)^(90/365) = approximately 1.722903.
Now, we can calculate the future value:
Future Value = $500 * 1.722903
Therefore, the initial investment of $500 would be worth approximately $861.45 after 90 days if it earned a daily interest rate of 3%.