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

now, there are 12 months in a year, so in 10 years that'd be 120 months, plus 9 more months, that'd be 129 months.

how many years is that? well, there are 12 months in a year, so 129/12 years, or 43/4 simplified for that matter.

compounding daily will be "continuously compounding" interest, or you can always uses the compound interest with a cycle of 365, assuming 365 days per year.


`\bf \qquad \textit{Continuously Compounding Interest Earned Amount} \\\\ A=Pe^(rt) \quad \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)}`