Respuesta :
Answer:
The amount of money, to the nearest cent, that would be in the account after 11 years is $54,928.20.
Step-by-step explanation:
In this case we need to compute the future value,i.e. the amount Bentley would receive at the end of a certain time period.
The amount invested by Bentley is, PV = $26,000.
The interest rate is, r = 6.8% compounded daily.
The time time is, n = 11 years × 365 = 4015.
The formula to compute the future value is:
[tex]FV=PV\times (1+\frac{r}{365})^{n}[/tex]
Compute the the future value as follows:
[tex]FV=PV\times (1+\frac{r}{365})^{n}[/tex]
[tex]=26000\times (1+\frac{0.068}{365})^{4015}\\\\=26000\times 2.1126231\\\\=54928.2006\\\\\approx 54928.20[/tex]
Thus, the amount of money, to the nearest cent, that would be in the account after 11 years is $54,928.20.
Answer: $54,928.20.
The amount of money, to the nearest cent, that would be in the account after 11 years is $54,928.20.
Step-by-step explanation:
In this case we need to compute the future value,i.e. the amount Bentley would receive at the end of a certain time period.
The amount invested by Bentley is, PV = $26,000.
The interest rate is, r = 6.8% compounded daily.
The time time is, n = 11 years × 365 = 4015.
The formula to compute the future value is:
Compute the the future value as follows:
Thus, the amount of money, to the nearest cent, that would be in the account after 11 years is $54,928.20.
