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Zoey invested $230 in an account paying an interest rate of 6.3% compounded daily.
Assuming no deposits or withdrawals are made, how much money, to the nearest
hundred dollars, would be in the account after 12 years?

Respuesta :

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Answer:

A ≈ $500

General Formulas and Concepts:

Pre-Alg

  • Order of Operations: BPEMDAS

Algebra I

Compounded Interest Rate: A = P(1 + r/n)ⁿˣ

  • A is final amount
  • P is initial (principle) amount
  • r is rate
  • n is number of compounds
  • x is number of years

Step-by-step explanation:

Step 1: Define

P = 230

r = 0.063

n = 365

x = 12

Step 2: Solve for A

  1. Substitute:                    A = 230(1 + 0.063/365)³⁶⁵⁽¹²⁾
  2. Divide:                          A = 230(1 + 0.000173)³⁶⁵⁽¹²⁾
  3. Multiply:                        A = 230(1 + 0.000173)⁴³⁸⁰
  4. Add:                              A = 230(1.00017)⁴³⁸⁰
  5. Exponents:                   A = 230(2.1296)
  6. Multiply:                        A = 489.808

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