Samantha invested 50,000 in an account paying an interest rate of 4.1% compounded daily. Assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 8 years?

Solution

Samantha invested 50, 000 in an account paying an interest rate of 4.1% compounded daily. Assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 8 years?

Solution

Amount : 69408.17

Solution steps

Translate the problem into an equation:

A = 50000 (1 + \frac{0.041}{365})^{365 \cdot 8}

50000 (1 + \frac{0.041}{365})^{365 \cdot 8} = 69408.17006 \dots

Round to the nearest hundredth:

69408.17

Amount : 69408.17

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