you have invested $1,800.00 at 7% daily for 4 years. what is the interest paid?

Question

a. $ 518.57
b. $ 581.57
C. $ 681.57
d. $ 618.57

Answer 1

Here's one way to look at the problem.
If I am correct in assuming that you put $1800 away four years ago, didn't have to pay taxes on it, or at least left it there undisturbed then:
7%/365+1 = 1+ .000191781=1.000191781^365= 7.25% annual return. So that means you'd earn $130.5 in the first year. Since that would compound, we can figure four years at 7.25%. So 1.0725^4 = $2381.56

So I'll go with B.

Answer 2

As stated, none of the answers are correct. If 7% is paid daily, and compounded, the money will double in ten days. (Rule of 70/72.) In four years, it will have doubled 130 times, which means multiplied by approximately ten trillion. So the answer would be about $18,000,000,000,000. If the problem is re-stated: Invested $1,800 at 7% simple interest PER ANNUM, the interest would be 4 x 0.07 times $1800, or $504.00. The problem, however, implies compound interest, which would increase the interest; you would need a financial calculator to figure it out exactly.
Later: I fired up my scientific calculator, and it came up with $582. So it looks like answer b is correct.

Answer 3

your choices are all wrong.
7% interest daily of $1800 is: $126, multiply by the number of days in 4 years, leap year is 366 days which comes every 4 years, the rest of the 3 years is 365 days, total 1461 days at $126 per day interest = $184,086.00
Not bad. Let me have the name of the investment Company.

Answer 4

The daily interest rate would be .07/365 then the amount of interest plus principle would be.

1800*((1+.07/365)^(4*365))

subtract the original amount to get the amount of interest

Answer 5

I = 1800(1 + (.07/365))^(4 * 365)

If you work that out, then subtract 1800 from it, you will get about 581.57

ANS : B.) 581.57

Answer 6

none of the above

Answer 7

who cares?