Respuesta :
Using compound interest, it is found that $390.6 was earned in interest in the next 90 days.
What is compound interest?
The amount of money earned, in compound interest, after t years, is given by:
[tex]A(t) = P\left(1 + \frac{r}{n}\right)^{nt}[/tex]
In which:
- A(t) is the amount of money after t years.
- P is the principal(the initial sum of money).
- r is the interest rate(as a decimal value).
- n is the number of times that interest is compounded per year.
In this problem, the parameters are:
P = 28214.35, r = 0.055, n = 365, t = 3/12 = 0.25.
Hence the amount after 90 days is:
[tex]A(t) = P\left(1 + \frac{r}{n}\right)^{nt}[/tex]
[tex]A(90) = 28214.35\left(1 + \frac{0.055}{365}\right)^{365 \times 0.25}[/tex]
A(90) = $28,604.95
28604.95 - 28214.35 = $390.6 was earned in interest in the next 90 days.
More can be learned about compound interest at https://brainly.com/question/25537936
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