A calculator will be helpful in solving the following problem.

After receiving an inheritance of $11,600, a man deposits the money in an account paying an annual rate of 7.2%, compounded daily. How much money will be in the account at the end of 4 years? (Round your answer to the nearest cent.)

Question

A calculator will be helpful in solving the following problem.

After receiving an inheritance of $11,600, a man deposits the money in an account paying an annual rate of 7.2%, compounded daily. How much money will be in the account at the end of 4 years? (Round your answer to the nearest cent.)

jim_thompson5910 · Answer

A=P(1+r/n)^(n*t)


A=11600(1+0.072/365)^(365*4)


A=11600(1+0.000197260273972603)^(365*4)


A=11600(1.00019726027397)^(365*4)


A=11600(1.00019726027397)^(1460)


A=11600(1.33371942362715)


A=15471.145314075


A=15471.15


So $15,471.15 will be in the account at the end of 4 years

anonymous · Answer

A= 11600(1+ 0.072/365)^(365*4) = 15471.15