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You inherit $134,000 and decide to invest it for 90 days compounded daily at 7.25% annual interest (exact). After the 90 days, you are going to invest your new-found money in a startup business.
a) How much interest is earned on this investment?
You can either use the Future Value formula or Table 13-2
Future Value Formula
FV = P(1 + R)N
Reminder: R = Interest Rate per period (day)
Table 13-2: Compound Interest on $100, Compounded Daily (
days) (Exact Time, Exact Interest Basis)
Reminder - The Table is for compound interest on each $100.
b) How much money will you have to invest in the startup after the 90 days?
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