document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=970240>Question 970240</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Will someone solve and explain this question:\r<BR>\n" );
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document.write( "Q: Mr. Sim invests $9000 at 2% per annum compound interest compounded daily. What is this amount at the end of the third day? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #592881 by </B><A HREF=/tutors/aboutme.mpl?userid=LinnW><B>LinnW(1048)</B></A><img src=\"/images/stars/stars-12.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=LinnW><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=LinnW><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=592881\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> At 2% per year, the daily interest rate is ( 2% / 365 ).<BR>\n" );
document.write( "( 2% / 365 ) = 0.02/365 = 0.0000547945<BR>\n" );
document.write( "We need to apply the interest rate over 3 days.<BR>\n" );
document.write( "If r is the rate of interest for one day,<BR>\n" );
document.write( "(1+r)(1+r)(1+r)*9000 will give us the amount in the account<BR>\n" );
document.write( "after 3 days.<BR>\n" );
document.write( "(1+r)(1+r)(1+r) = (1+r)^3<BR>\n" );
document.write( "so (1+r)(1+r)(1+r)*9000 = (1+r)^3*9000<BR>\n" );
document.write( "Since r = 0.0000547945<BR>\n" );
document.write( "(1+r)^3*9000 = (1+0.0000547945)^3*9000<BR>\n" );
document.write( "= (1.0000547945)^3*9000<BR>\n" );
document.write( "= 1.000164392507476207796812933625 * 9000<BR>\n" );
document.write( "= approximately 9001.47953 </SPAN>\n" );
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