Joshua invested 97,000 in an account paying an interest rate of 6% compounded daily. Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 8 years?

Solution

Joshua invested 97, 000 in an account paying an interest rate of 6% compounded daily. Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 8 years?

Solution

Amount : 156753.03

Solution steps

Translate the problem into an equation:

A = 97000 (1 + \frac{0.06}{365})^{365 \cdot 8}

97000 (1 + \frac{0.06}{365})^{365 \cdot 8} = 156753.03333 \dots

Round to the nearest hundredth:

156753.03

Amount : 156753.03

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