Question

Victoria Firth’s savings account balance is $247. She deposits an additional $353. The account pays 5.5% interest compounded daily. She makes no other deposits or withdrawals. What will the new balance be after 31 days?

Answer 1

Hi there
The formula is
A=p (1+rt)
A future value?
P present value 247+353=600
R interest rate 0.055
T time 31/365

A=600×(1+0.055×(31÷365))
A=602.80

Good luck!

Answer 2

The balance would be $ 602.81. ( approx )

Explanation:

Given,

Initial balance of Victoria's account = $247,

After depositing an additional $353,

Her new balance = $ 247 + $ 353 = $ 600,

Now, the account pays 5.5% interest compounded daily,

We know that,

If an amount P is compounded daily with the rate of r %,

Then the final amount after t days is,

`A=P(1+(r)/(3600))^(t)`

Hence, her new balance after 31 days,

`A=600(1+(5.5)/(36500))^(31)`

`=\$602.809083923\approx \$ 602.81`