Answer:
$3,090.64
Step-by-step explanation:
We shall allocate a random letter to each value, with that I explain the formula.
Initial value of investment = $5,003.86 = P
Rate of interest = 3.7% = R
Compounding interval in a year = 365 = I
Total period = 13 years = T
Value of investment in compound interest formula shall be:
[tex]= P \times (1 + \frac{R}{(I})^{(I \times T)}[/tex]
Now, putting values in the above equation:
[tex]= 5,003.86 \times (1 + \frac{0.037}{365}) ^{(365\times13)}[/tex]
= $8,094.50
Thus, interest earned = Total value of investment on maturity - Initially invested amount
= $8,094.50 - $5,003.86 = $3,090.64
