Question

Wanda opened a savings account 20 years ago with a deposit of $3,150.37. The account has an interest rate of 4.1% compounded daily. How much interest has Wanda earned?

Answer 1

take the interest rate and divided by 365
new interest ......> 0.041/365 = (0.0001123 )
if you need to know the future value = 3,150.37*(1.0001123^(20*365)-1) /0.0001123 = 230981.5216
do it again in your own

Answer 2

$4002.215

Explanation:

Principal = $3,150.37.

Time = 20 years

The account has an interest rate of 4.1% compounded daily.

So, r = 0.041

No. of compounds per year = 365

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

`A=3150.37(1+(0.041)/(365))^(365 * 20)`

`A=7152.5851794`

Interest =Amount - Principal = 7152.5851794 - 3150.37=$4002.215

Hence Wanda earned $4002.215 as interest