SOLUTION: 20. Find the amount of money in an account after 12 years if $12,500 is deposited at 8.25% annual interest compounded daily (assume 365 days in a year). Answer:

Question 342034: 20. Find the amount of money in an account after 12 years if $12,500 is deposited at 8.25% annual interest compounded daily (assume 365 days in a year).
Answer:

Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!

Start with the compound interest formula

Plug in , (the decimal equivalent of 8.25%), and .

Evaluate } to get

Add to to get

Multiply and to get .

Evaluate to get .

Multiply and to get .

Round to the nearest hundredth (ie to the nearest penny).

So the amount of money in the account is about $33,636.67

If you need more help, email me at jim_thompson5910@hotmail.com

Also, feel free to check out my tutoring website

Jim
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