Question

Robert invested $860 in an account paying an interest rate of 5. 1% compounded daily. Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 13 years?

Answer 1

Amount in the account after 13 year is $1668.84.

Given data;

Robert put $860 into a savings account with a daily compound interest rate of 5.1%. Considering there have been no deposits or withdrawals;

Principal (P) = $860

Time (t) = 13

Compounding period in year (n) = 365

Rate of interest (R) = 5.1%

First, convert R as a percent to r as a decimal r = R / 100 r

                                                                              = 5.1 / 100 r

                                                                              = 0.051 rate per year  Then solve the equation for A;

A = P(1 + r/n)^nt

A = 860.00 * (1 + 0.051/365)^(365)(13)

A = 860.00(1 + 0.00013972602739726)^(4745)    

A = $1,668.84

So,

Amount in the account after 13 year = $1668.84

To learn more about compound interest click here:

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