asher flynn deposited $875 in a new savings account that earns 1.5 percent interest compounded daily. he…
asher flynn deposited $875 in a new savings account that earns 1.5 percent interest compounded daily. he made no other deposits or withdrawals. what was the amount in the account at the end of 4 years? what is the compound interest? determine the values for each of the variables. p = 875, r = 1.5%, n = 365, t = 4. calculate the amount in the account at the end of 4 years: (p(1+\frac{r}{n})^{nt}). determine the compound - interest earned at the end of 4 years. jennifer hooper deposited $840 in a new savings account that earns 3.25 percent interest compounded monthly. she made no other deposits or withdrawals. what was the amount in the account at the end of 10 years? what is the compound interest? determine the values for each of the variables. p =, r =, n =, t =, calculate the amount in the account at the end of 10 years.
Answer
Explanation:
Step1: Identify the compound - interest formula
The compound - interest formula when compounded daily is $A = P(1+\frac{r}{n})^{nt}$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal), $n$ is the number of times interest is compounded per year, and $t$ is the number of years. Given $P = 875$, $r=0.015$ (since $1.5%=0.015$), $n = 365$, and $t = 4$.
Step2: Calculate the amount $A$
$A=875(1 +\frac{0.015}{365})^{365\times4}$ First, calculate the value inside the parentheses: $\frac{0.015}{365}\approx0.0000411$. Then $1+\frac{0.015}{365}=1 + 0.0000411=1.0000411$. Next, calculate the exponent: $365\times4 = 1460$. So, $A = 875\times(1.0000411)^{1460}$. Using a calculator, $(1.0000411)^{1460}\approx1.06183$. Then $A=875\times1.06183\approx929.00$.
Step3: Calculate the compound interest
The compound interest $CI=A - P$. $CI = 929.00-875=54.00$.
Answer:
The amount in the account at the end of 4 years is approximately $$929.00$ and the compound interest is approximately $$54.00$.