SOLUTION: Adair has deposited $361 in a savings account that earns interest at a rate of 1.3% compounded daily. What will the account balance be in 16 years?

Algebra ->  Equations -> SOLUTION: Adair has deposited $361 in a savings account that earns interest at a rate of 1.3% compounded daily. What will the account balance be in 16 years?      Log On


   

Question 549797: Adair has deposited $361 in a savings account that earns interest at a rate of 1.3% compounded daily. What will the account balance be in 16 years?
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
A=P%281%2Br%2Fn%29%5E%28n%2At%29 Start with the compound interest formula


A=361%281%2B0.013%2F365%29%5E%28365%2A16%29 Plug in P=361, r=0.013 (the decimal equivalent of 1.3%), n=365 and t=16.


A=361%281%2B0.00003561643836%29%5E%28365%2A16%29 Evaluate 0.013%2F365 to get 0.00003561643836%0D%0A


A=361%281.00003561643836%29%5E%28365%2A16%29 Add 1 to 3.56164383561644e-005 to get 1.00003561643836


A=361%281.00003561643836%29%5E%285840%29 Multiply 365 and 16 to get 5840.


A=361%281.23120860911695%29 Evaluate %281.00003561643836%29%5E%285840%29 to get 1.23120860911695.


A=444.46630789122 Multiply 361 and 1.23120860911695 to get 444.46630789122.


A=444.47 Round to the nearest hundredth (ie to the nearest penny).


So the account balance will be $444.47