# Math Help - investment

1. ## investment

Ace invests his big bucks ($5000) in an account that earns 5% annually, compounded quarterly. How much would he earn in 1 year, if the account were compounded daily? 2. Originally Posted by DINOCALC09 Ace invests his big bucks ($5000) in an account that earns 5% annually, compounded quarterly. How much would he earn in 1 year, if the account were compounded daily?
recall the compound interest formula.

$A = P \left( 1 + \frac rn \right)^{nt}$

Here $A$ is the amount after time $t$, $P$ is the principal (the original amount), $r$ is the interest rate (written as a decimal), $n$ is the number of times per unit time the principal is compounded, in this case, the number of times per year

Just plug in and solve for A. then subtract the original amount from it to find how much was earned

3. when i plug in its not working out?

4. Originally Posted by DINOCALC09
when i plug in its not working out?
what answer did you get? i got something like 5256.34 for the total amount at the end of 1 year