Matthew invested 680 in an account paying an interest rate of 5.8% compounded daily. Assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 11 years?

Lösung

M a tt h e w in v es t e d 680 in an a cco u n t p a y in g an in t eres t r a t e o f 5.8% co m p o u n d e d d ai l y . A ss u min g n o d e p os i t s or w i t h d r a w a l s a re ma d e, h o w m u c h m o n ey, t o t h e n e a res t t e n d o ll a rs, w o u l d b e in t h e a cco u n t a f t er 11 ye a rs ?

Amount : 1286.97

Schritte zur Lösung

Translate the problem into an equation:

A = 680 (1 + \frac{0.058}{365})^{365 \cdot 11}

680 (1 + \frac{0.058}{365})^{365 \cdot 11} = 1286.96512 \dots

Round to the nearest hundredth:

1286.97

Amount : 1286.97