Bentley is going to invest $98,000 and leave it in an account for 7 years. assuming
the interest is compounded daily, what interest rate, to the nearest tenth of a percent,
would be required in order for bentley to end up with $114,000?

The rate of interest for compounded daily is 2.1 6

Step-by-step explanation:

Given as :

The principal investment = $ 98,000

The Time period for investment = 7 years

Let The rate of interest compounded daily = R %

The Amount at the end up = $ 114,000

From compounded method

Amount = Principal ×

Or, $ 114,000 = $ 98,000  ×

Or, =

or, 1.16326 =

or, = 1 +

1.00005919 - 1 =  

or, 0.00005919 =  

∴ R =  0.00005919 × 365000 = 2.16

Hence the rate of interest for compounded daily is 2.1 6   Answer