Carter invested 3,900 in an account paying an interest rate of 3.9% compounded daily. Assuming no deposits or withdrawals are made, how much money, to the nearest hundred dollars, would be in the account after 5 years?

Solution

Carter invested 3, 900 in an account paying an interest rate of 3.9% compounded daily. Assuming no deposits or withdrawals are made, how much money, to the nearest hundred dollars, would be in the account after 5 years?

Solution

Amount : 4739.66

Solution steps

Translate the problem into an equation:

A = 3900 (1 + \frac{0.039}{365})^{365 \cdot 5}

3900 (1 + \frac{0.039}{365})^{365 \cdot 5} = 4739.66347 \dots

Round to the nearest hundredth:

4739.66

Amount : 4739.66

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