Question

Find the amount in an account if $65,950 is invested at 5.25% compounded daily, for 10 years and 9 months.

Answer 1

129 months

Explanation:

Answer 2

we could use 365 days for a year, OR we could simply use the Continuously Compounding formula, which equates to the same thing anyway.

now, 10 years and 9 months is hmm let's see 10 years is 120 months plus 9, so 129 months, since a year has 12 months then that'd be 129/12 years, thus


`\bf ~~~~~~ \textit{Continuously Compounding Interest Earned Amount} \\\\ A=Pe^(rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to& \$65950\\ r=rate\to 5.25\%\to (5.25)/(100)\to &0.0525\\ t=years\to (129)/(12)\to &(43)/(4) \end{cases} \\\\\\ A=65950e^{0.0525\cdot (43)/(4)}\implies A=65950e^(0.564375)\implies A\approx115963.081691`