Question

Please help! Sara saved $1,000 in the bank. She decided to leave it there for 5 years. Find the amount of money Sara will have in her account after 5 years if she chooses 6.8% interest compounded daily. (365 times a year-leap year not included).

Answer 1

The Compound Interest Equation

P = C (1 + r/n) nt

where
P = future value
C = initial deposit
r = interest rate (expressed as a fraction: eg. 0.06)
n = # of times per year interest in compounded
t = number of years invested

Source: http://math2.org/math/general/interest.htm

Answer 2

The last nt should be a power, sorry.

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

Answer 3

So, in your question,

P=1000(1+0.068/365)^(365*5)

Answer 4

And, my calculator just broke, so you'll have to figure it out on your own, lol.

Answer 5

P=1000(1+0.068/365)^365(5)?