what is the principle investment ? you have $1728.34 compounded daily at 3.4% and its invested for 9 years
The original principle is 1728.34, but it increases daily.
The principal investment refers to the initial amount of money that is invested. In this case, the principal investment is $1728.34.
To calculate the future value of an investment compounded daily at an annual interest rate of 3.4% over a period of 9 years, you can use the formula for compound interest:
Future Value (FV) = Principal (P) * (1 + (Interest Rate (r) / Number of Compounding Periods per Year (n)))^(Number of Years (t) * Number of Compounding Periods per Year (n))
In this case:
Principal (P) = $1728.34
Interest Rate (r) = 3.4% = 0.034
Number of Compounding Periods per Year (n) = 365 (since it is compounded daily)
Number of Years (t) = 9
Plugging in the values into the formula, we can calculate the future value:
FV = $1728.34 * (1 + (0.034 / 365))^(9 * 365)
Now let's solve this equation step-by-step:
Step 1: Simplify the expression inside the brackets.
FV = $1728.34 * (1 + 0.00009315)^(3285)
Step 2: Evaluate the expression inside the brackets.
FV = $1728.34 * (1.00009315)^(3285)
Step 3: Raise the expression inside the brackets to the power of 3285.
FV = $1728.34 * 4.228
Step 4: Multiply the principal investment by the result.
FV = $7322.77
Therefore, after 9 years of daily compounding at an interest rate of 3.4%, the investment will grow to approximately $7322.77.