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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Question

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 the
interest 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 rates
Days
1.00%
1.50%
1.25%
0.001370 0.002055 | 0.002740 0.003425| 0.004110 |0.004795
0.006849
0.50%
0.75%
1.75%
2.00%
2.25%
2.50%
0.005479
0.010959
1
0.006164
0.006849
0.002740
0.004110
0.006165
0.008219
0.009589
0.014384
0.005480
0.008219
0.012329
0.013699
3
0.004110
0.008219
0.010274
0.012329
0.016439
0.018494
0.020549
4
0.005480
0.010959
0.013699
0.016439
0.019179
0.021920
0.024660
0.027400
0.006850
0.010274 | 0.013699
0.008219 0.012329| 0.016439
0.014384 0.019180
0.021920
0.024660
0.017124
0.020550
0.023975
0.027400
0.034251
0.030826
0.036992
0.043159
0.049326 0.054808
0.024660
0.028771
6
0.020550
0.028771
0.032881
0.041103
7
0.010959
0.038362
0.043844
0.049326
0.009589
0.023975
0.033566
0.047955
0.016440
0.027401
0.032881
0.038363
0.018495
0.020550
0.022605
0.024660
0.017810 | 0.026716
9.
0.012329
0.030826
0.036992
0.043159
0.055493
0.061661
0.013699
0.015070
0.016440
0.061661
0.067829
0.073998
0.080167
10
0.027401
0.034252
0.041103
0.047956
0.054808
0.068514
0.037678
0.041104
11
0.030141
0.045215
0.052752
0.060290
0.075368
0.032882
0.035622
12
0.049326
0.057549
0.065773
0.082223
13
0.044530
0.053438
0.062347
0.071256
1.089078

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