You have a saving account at federal saving. the account earns 5.5 percent interest compound daily. on March 6 you had 1,645.72 in your account how much would be in the account on July 4th?

Question

Nelson

Mathematics

3 March, 06:56

You have a saving account at federal saving. the account earns 5.5 percent interest compound daily. on March 6 you had 1,645.72 in your account how much would be in the account on July 4th?

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Answers (1)

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Vanessa Ross · Answer 1

1,675.75

Step-by-step explanation:

Using "exact interest", we divide the annual rate by 365 to find the daily rate. Then the amount the balance is multiplied by in 120 days is ...

(1 + 0.055/365) ^120 ≈ 1.018245277

That will result in a balance of ...

1,645.72 * 1.018245277 ≈ 1,675.75