Answer:
The rate of interest for compounded daily is 2.1 6
Step-by-step explanation:
Given as :
The principal investment = $ 98,000
The Time period for investment = 7 years
Let The rate of interest compounded daily = R %
The Amount at the end up = $ 114,000
From compounded method
Amount = Principal × [tex](1+\dfrac{rate}{365\times 100})^{365\times Time}[/tex]
Or, $ 114,000 = $ 98,000 × [tex](1+\dfrac{R}{365\times 100})^{365\times 7}[/tex]
Or, [tex]\frac{114000}{98000}[/tex] = [tex](1+\dfrac{R}{36500})^{2555}[/tex]
or, 1.16326 = [tex](1+\dfrac{R}{36500})^{2555}[/tex]
or, [tex](1.16326)^{\frac{1}{2555}}[/tex] = 1 + [tex]\frac{R}{36500}[/tex]
1.00005919 - 1 = [tex]\frac{R}{36500}[/tex]
or, 0.00005919 = [tex]\frac{R}{36500}[/tex]
∴ R = 0.00005919 × 365000 = 2.16
Hence the rate of interest for compounded daily is 2.1 6 Answer
