Question

You invest an initial $4,500 in an account that has an annual interest rate of 4.5%, compounded daily. How much money will you have in the account after 10 years? Round your answer to the nearest whole number.

Answer 1

Get the formula for compound interest. A(t)=P(1-r/n)^nt.
P=principle (initial amount invested)
r= interest rate
n=how often is it compounded
t = years
A(t) is the function the describes the amount of money in the account as time changes.

So now just plug in your numbers. In this case P=4,500, r= .045 n= 365, and t=10