Madison invested $3,300 in an account paying an interest rate of 6.7% compounded daily. Assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 5 years?
Answers
Answered by
3
Answer:
Step-by-step explanation:
Madison invested = $ 3300
Rate of interest = 6.7 %
Time = 5 years
amount = Principal ( 1 + r /100 ) ^time
Amount = $3300 ( 1 + 6.7 /100 ) ^ 5
Amount = $3300 ( 1 + 6.7/100 ) ^5
Amount = $3300 ( 106.7 /100)^5
Amount = $3300 (1.067 ) ^5
Amount = $3300 ( 1.382)
Amount = $4563.89
He will receive $4563 .89 in 5 years
Answered by
7
Answer:
Step-by-step explanation:
A=P(1+ nr
)
nt
Compound interest formula
P
=
3300
r
=
0.067
t
=
5
n
=
365
P=3300r=0.067t=5n=365
Given values
A
=
3300
(
1
+
0.067
365
)
365
(
5
)
A=3300(1+
365
0.067
)
365(5)
Plug in values
A
=
3300
(
1.0001835616
)
1825
A=3300(1.0001835616)
1825
Simplify
A
=
4613.06145057
A=4613.06145057
Use calculator
A
≈
4610
A≈4610
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