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se the appropriate compound interest formula to compute the balance in the account after the stated period of time $26,000 is invested for 7 years with an APR of 2% and daily compounding.

se the appropriate compound interest formula to compute the balance in the account after the stated period of time $26,000 is invested for 7 years with an APR of 2% and daily compounding.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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I am having issues simplifying the compound interest last step after dividing the rate by periods and i have tje exponent, how do I input this into a calculator

LW SCOA:27 59/ 22 of 8.noints vork: Hof View an Example | 1 part remaining compound sted for 3 ye Use the appropriate compound interest formula to compute the balance in the account after the stated period of time $26,000 is invested for 7 years with an APR of 2% and daily compounding. account aftei est cent as n. APR = 0.02 Substitute P= $26,000, Y = 7, n= 365, and APR = 0.02 into the formula. Evaluate the expression to find the value of A, rounding to the nearest cent. APR) (nY) A = P1+ %3D 0.02) (365 x 7) = $26,000 1+ 365 Substitute. = $29,907.00 二D Simplify. Print mple V Continue e to search 梦1 a 53 83 F
Transcribed Image Text:LW SCOA:27 59/ 22 of 8.noints vork: Hof View an Example | 1 part remaining compound sted for 3 ye Use the appropriate compound interest formula to compute the balance in the account after the stated period of time $26,000 is invested for 7 years with an APR of 2% and daily compounding. account aftei est cent as n. APR = 0.02 Substitute P= $26,000, Y = 7, n= 365, and APR = 0.02 into the formula. Evaluate the expression to find the value of A, rounding to the nearest cent. APR) (nY) A = P1+ %3D 0.02) (365 x 7) = $26,000 1+ 365 Substitute. = $29,907.00 二D Simplify. Print mple V Continue e to search 梦1 a 53 83 F
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Step 1

Given information :

Investment amount $26,000
Time period (years) 7
Interest rate (Annual) 2%
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