If you put $6,000 in a savings account that yields an 1% rate of interest compounded daily, what will the investment be worth at the end of one year?
A) $6060.00
B) $6,060.30
C) $6,006.03
D) $6,760.95

Question

Quizplus · Accepted Answer

The formula for compound interest is A=P(1+r/n)^(nt), where A is the amount, P is the principal, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the time in years. Plugging in the values, we get A=6000(1+0.01/365)^(365*1)=6060.30. Therefore, the investment will be worth $6,060.30 at the end of one year. The correct answer is B.

If You Put $6,000 in a Savings Account That Yields