Cooper invested 1,100 in an account paying an interest rate of 3.8% compounded daily. Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 10 years?

Solution

Cooper invested 1, 100 in an account paying an interest rate of 3.8% compounded daily. Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 10 years?

Solution

Amount : 1608.48

Solution steps

Translate the problem into an equation:

A = 1100 (1 + \frac{0.038}{365})^{365 \cdot 10}

1100 (1 + \frac{0.038}{365})^{365 \cdot 10} = 1608.48123 \dots

Round to the nearest hundredth:

1608.48

Amount : 1608.48

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