Question

you plan to deposit $19,500 into a savings account that has a 3.75% interest rate compounded daily. what will be the balance of your savings account after 14 years?
use this formula:
$a = p(1 + \frac{r}{n})^{nt}$
enter the dollar amount rounded to the nearest cent.
your answer:
answer
view hint for question 6

Explanation:

Step1: Define variables

$P = 19500$, $r = 0.0375$, $n = 365$, $t = 14$

Step2: Calculate $\frac{r}{n}$

$\frac{0.0375}{365} \approx 0.00010274$

Step3: Calculate $1+\frac{r}{n}$

$1 + 0.00010274 = 1.00010274$

Step4: Calculate $nt$

$365 \times 14 = 5110$

Step5: Calculate $(1+\frac{r}{n})^{nt}$

$1.00010274^{5110} \approx 1.6732$

Step6: Compute final amount $A$

$A = 19500 \times 1.6732$

Answer:

$32627.40$