Question

Victoria Firth’s savings account balance is $247. She deposits an additional $353. The account pays 5.5% interest compounded daily. She makes no other deposits or withdrawals. What will the new balance be after 31 days?

Answer 1

Hi there
The formula is
A=p (1+rt)
A future value?
P present value 247+353=600
R interest rate 0.055
T time 31/365

A=600×(1+0.055×(31÷365))
A=602.80

Good luck!

Answer 2

Answer:

The balance would be $ 602.81. ( approx )

Step-by-step explanation:

Given,

Initial balance of Victoria's account = $247,

After depositing an additional $353,

Her new balance = $ 247 + $ 353 = $ 600,

Now, the account pays 5.5% interest compounded daily,

We know that,

If an amount P is compounded daily with the rate of r %,

Then the final amount after t days is,

$A=P(1+\frac{r}{3600})^{t}$

Hence, her new balance after 31 days,

$A=600(1+\frac{5.5}{36500})^{31}$

$=\ 602.809083923\approx \ 602.81$