Mary deposits $15,000 into a savings account that pays 3.75% interest compounded daily. What will the balance be after five years?

Question

amistre64 · Answer

id just use the compound formula

amistre64 · Answer

$$A=P(1+r/n)^{nt}$$

jdoe0001 · Answer

hmmm

jdoe0001 · Answer

assuming that there are 365 days in a year... then $\bf A=P\left(1+\frac{r}{n}\right)^{nt}
\ \quad \
A=\textit{current amount}\
P=\textit{original amount deposited}\to \$15,000\
r=rate\to 3.75\%\to \frac{3.75}{100}\to 0.0375\
n=\textit{times it compounds per year}\to 365\
t=years\to 5$