Maths assignment - compound interest or geometric progression
Capital invested with interest, may be compounded at any time interval, (quarterly, daily or continuously) for any set time period. The formula used for discrete intervals of time is given by: FV = PV (1+r)^n
(FV is future value, PV is present value, r is interest rate for the time interval, n is number of time intervals)
a) Find the return on $100 investment compounded daily at 6%p.a. for 10 years
a) FV =?
PV = $100
r= 0.06/365.25 = 0.0001642710472
= $100 (1+0.0001642710472)^3652.5
Is that right? Or am i meant to do it like a geometric progression? If so, what is the geometric progression formula? I learnt it today but i left my workbook at school.