Question

Haley has deposited $816 in a savings account that earns interest at a rate of 2.9% compounded daily. What will the account balance be in nine years?

- $2,366.40
- $839.66
- $1,059.34

Answer 1

easy!

Answer 2

My teacher told me the answer. I just dont know how he got it.

Answer 3

He said it was $1,059.34

Answer 4

Sec, I'll write it out for you :)

Answer 5

Thanks (:

Answer 6

First of all do you know the compound interest formula?

Answer 7

No.. what is it?

Answer 8

http://qrc.depaul.edu/studyguide2009/notes/savings%20accounts/compound%20interest.htm
This is the basic formula but it doesn't tell you how to compound it daily

Answer 9

A = 816(1+0.029/365)^3285

Answer 10

Copy and paste this into google.

Answer 11

I can explain it if you want.

Answer 12

Ask me anything.

Answer 13

And give medal please :)

Answer 14

Okay, thank you! From the formula, I can see where you got the numbers from, but where did you get the 365 from?

Answer 15

Im new to this.. how do I give you a medal? (:

Answer 16

Simple, 365 = days in the number of years.

Answer 17

Click on best response.

Answer 18

Thank you :)

Answer 19

in the brackets you take the rate (turn the rate into a decimal) and divide it by the number of compounding periods per year (it's compounded daily)

Answer 20

for 9 years

Answer 21

so 365

Answer 22

Okay, that makes sense. thank you!!

Answer 23

No problem