Sarah invested $3,800 in an account paying an interest rate of 3.6% compounded daily. Assuming no deposits or withdrawals are made, how much money, to the nearest hundred dollars, would be in the account after 15 years?

Answers

Answer 1

Answer:

6500

Step-by-step explanation:

A=P(1+nr)nt

Compound interest formula

P=3800

r=0.036

t=15

n=365

P=3800r=0.036t=15n=365

Given values

A=3800 (1+0.036 365)

365(15)

A=3800(1+365 0.036)

365(15)

Plug in values

A=3800(1.0000986301)     5475

A=3800(1.0000986301)

5475

Simplify

A=6520.65243954

A=6520.65243954

Use calculator

A≈6500

A≈6500

Round to nearest hundred

Answer 2

The amount in account after 15 years will be $6500

What is compound interest ?

Compound interest is the interest you earn on interest.

Given that, Sarah invested $3,800 in an account paying an interest rate of 3.6% compounded daily.

Compound interest formula;

A = P(1+r/n)^nt

We have,

P = 3800

r = 0.036

t = 15

n = 365

P = 3800 r = 0.036 t = 15 n = 365

Putting the values and on simplification, we get,

A = 3800(1+0.036 365)365(15)

A = 3800(1+365 0.036)365(15)

A = 3800(1.0000986301)5475

A = 3800(1.0000986301)5475

A = 6520.65243954

A = 6520.65243954

A ≈ 6500

A ≈ 6500

Hence, The amount in account after 15 years will be $6500

For more references on Compound interest, click;

https://brainly.com/question/14295570

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Answers

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Answers

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