Question

Meg deposited a $3,000 bonus check in a new savings account. The account has an interest rate of 3% for 5 years. The interest is compounded daily. How much money did Meg have at the end of the account term? (Round your answer to the nearest dollar.)

Answer 1

The Answer is $3,485 btw

Explanation:

Answer C

Answer 2

The $3485.52 money did Meg have at the end of the account term.

Explanation:

Formula for compounded monthly

`Amount = P(1+(r)/(365))^(365n)`

Where P is the principle , r is the rate of interest in the decimal form and n is the number of years.

As given

Meg deposited a $3,000 bonus check in a new savings account. The account has an interest rate of 3% for 5 years.

Principle = $3000

3% is written in the decimal form

`= (3)/(100)`

= 0.03

Time = 5 years

Put in the formula

`Amount = 3000(1+(0.03)/(365))^(365* 5)`

`Amount = 3000(1+(0.03)/(365))^(1825)`

`Amount = 3000(1+(0.03)/(365))^(1825)`

`Amount = 3000(1+ 0.0000822)^(1825)`

`Amount = 3000(1.0000822)^(1825)`

`Amount = 3000* 1.16184`

Amount = $ 3485.52

Therefore the $ 3485.52 money did Meg have at the end of the account term.