Answer: $ $ 1439.0077 ( approx)
Step-by-step explanation:
Since, the amount in the compound interest when interest is calculated daily is,
[tex]A=P(1+\frac{r/360}{100})^{360n}[/tex]
Where P is the principal amount,
r is the annual interest rate,
n is the number of years,
Here, P = $ 6500
r = 5%
n = 4 years,
Therefore, the amount after 4 years,
[tex]A=6500(1+\frac{5/360}{100})^{360\times 4}[/tex]
[tex]A=6500(1+\frac{5}{36000})^{1440}[/tex]
[tex]A=6500\times 1.22138579592 [/tex]
[tex]A=$ 7939.00767349[/tex]
Therefore, the compound interest after 4 years = 7939.00767349 - 6500 = 1439.00767349 ≈ $ 1439.0077
