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Deborah Klempel can invest 5000 and either 3.50% compounded daily for five years or 4% compounded quarterly for four years what is the amount of interest earned on the 3.5% investment at the end of the five years

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anthougo

The amount of interest earned by Deborah Klempel on her investment of $5,000 at 3.5% compounded daily for five years is $956.18.

What is compound interest?

Compound interest is the interest earned on a loan or deposit.

Compound interest is calculated on both the initial principal plus accumulated interests.

Data and Calculations:

At 3.5% Interest Compounded Daily:

N (# of periods) = 1,825 days (365 x 5)

I/Y (Interest per year) = 3.5%

PV (Present Value) = $5,000

PMT (Periodic Payment) = $0

Results:

FV = $5,956.18

Total Interest = $956.18

At 4% Interest Compounded Quarterly:

N (# of periods) = 1,825 days (365 x 5)

I/Y (Interest per year) = 3.5%

PV (Present Value) = $5,000

PMT (Periodic Payment) = $0

Results:

FV = $5,956.18

Total Interest = $862.89

Thus, the amount of interest earned by Deborah Klempel at 3.5% compounded daily for five years is $956.18.

Learn more about compounding interest at https://brainly.com/question/28020457

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