SOLUTION: a credit union client deposits $1800 in an account earning 3% interest, compounded daily. what will the balance of the account be at the end of 27 years?

Question 865324: a credit union client deposits $1800 in an account earning 3% interest, compounded daily. what will the balance of the account be at the end of 27 years?
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!
We'll use the formula

where,

A = final amount

P = initial amount

r = interest rate

n = compounding frequency

t = time in years

----------------------------

In this case,

A = unknown (we're evaluating to find this)

P = 1800

r = 0.03 (from 3%)

n = 365 (assuming 365 days in a year)

t = 27

-----------------------------

Plug those values into the equation to get

Use a calculator for this step.

Round to the nearest penny.

So the balance of the account in 27 years will be $4,046.10
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