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8 votes
Jackson invested $8,800 in an account paying an interest rate of 7% compounded

daily. Assuming no deposits or withdrawals are made, how much money, to the
nearest dollar, would be in the account after 13 years?

User Jmarkstar
by
3.9k points

2 Answers

8 votes

Final answer:

To calculate the amount of money in the account after 13 years, you can use the formula for compound interest. Plugging in the given values, the amount would be approximately $19,636.

Step-by-step explanation:

To calculate the amount of money in the account after 13 years, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:

  • A is the final amount
  • P is the principal amount (initial investment)
  • r is the annual interest rate (7% in this case)
  • n is the number of times the interest is compounded per year (daily in this case)
  • t is the number of years (13 in this case)

Substituting the given values into the formula:

A = 8800(1 + 0.07/365)^(365*13)

A ≈ $19,636 (rounded to the nearest dollar)

User Deangelo
by
4.4k points
9 votes

Answer:

$21,860

Step-by-step explanation:

User Saqib Omer
by
4.5k points