Question

Khloe invested $5,600 in an account paying an interest rate of 5.3% compounded daily. Assuming no deposits or withdrawals are made, how much money, to the nearest hundred dollars, would be in the account after 7 years?

Answer 1

$8100

Explanation:

Answer 2

the amount after 7 years is $8,115.21

Explanation:

The computation of the amount after 7 years is shown below:

As we know that

Future value = Present value × (1 + rate of interest)^number of years

= $5,600 × (1 + 5.3%÷ 365)^7× 365

= $5,600 × (1+ 0.000145205 )^2555

= $8,115.21

Hence, the amount after 7 years is $8,115.21

We simply applied the above formula so that the correct value could come

And, the same is to be considered