Jackson invested 8,800 in an account paying an interest rate of 7% compounded daily. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 13 years?

Solution

Jackson invested 8, 800 in an account paying an interest rate of 7% compounded daily. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 13 years?

Solution

Amount : 21860.13

Solution steps

Translate the problem into an equation:

A = 8800 (1 + \frac{0.07}{365})^{365 \cdot 13}

8800 (1 + \frac{0.07}{365})^{365 \cdot 13} = 21860.13093 \dots

Round to the nearest hundredth:

21860.13

Amount : 21860.13

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