John Smith has found a short-term investment opportunity. He can invest $6,000 at 0.5% interest for 11 days. How much interest will he earn on this investment if theinterest is compounded daily?| Click the icon to view the table of compound interest of $100 compounded daily.The interest is S(Round to the nearest cent as needed.) Compound Interest on $100, Compounded Daily (365 Days) (Exact Time, Exact Interest Basis)Annual rate for selected ratesDays1.00%1.50%1.25%0.001370 0.002055 | 0.002740 0.003425| 0.004110 |0.0047950.0068490.50%0.75%1.75%2.00%2.25%2.50%0.0054790.01095910.0061640.0068490.0027400.0041100.0061650.0082190.0095890.0143840.0054800.0082190.0123290.01369930.0041100.0082190.0102740.0123290.0164390.0184940.02054940.0054800.0109590.0136990.0164390.0191790.0219200.0246600.0274000.0068500.010274 | 0.0136990.008219 0.012329| 0.0164390.014384 0.0191800.0219200.0246600.0171240.0205500.0239750.0274000.0342510.0308260.0369920.0431590.049326 0.0548080.0246600.02877160.0205500.0287710.0328810.04110370.0109590.0383620.0438440.0493260.0095890.0239750.0335660.0479550.0164400.0274010.0328810.0383630.0184950.0205500.0226050.0246600.017810 | 0.0267169.0.0123290.0308260.0369920.0431590.0554930.0616610.0136990.0150700.0164400.0616610.0678290.0739980.080167100.0274010.0342520.0411030.0479560.0548080.0685140.0376780.041104110.0301410.0452150.0527520.0602900.0753680.0328820.035622120.0493260.0575490.0657730.082223130.0445300.0534380.0623470.0712561.089078

Question pertains to calculation of interest amount in case of daily compounding. Calculations are…

John Smith has found a short-term investment opportunity. He can invest $6,000 at 0.5% interest for 11 days. How much interest will he earn on this investment if th interest is compounded daily? | Click the icon to view the table of compound interest of $100 compounded daily.

John Smith has found a short-term investment opportunity. He can invest $6,000 at 0.5% interest for 11 days. How much interest will he earn on this investment if th interest is compounded daily? | Click the icon to view the table of compound interest of $100 compounded daily.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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the effective interest rate is 10%
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