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32 votes
32 votes
use the appropriate compound interest formula to compute the balance in the account after the stated period of time $24,000 is invested for 3 years with an APR of 3% and daily compounding.

User Carl Groner
by
2.9k points

1 Answer

30 votes
30 votes

Given: compound interest

Balance = P = $24,000

Time = t = 3 years

Rate = r = 3% = 0.03

Daily compounding, n = 365

so,


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

substitute with P, r, t, and n


\begin{gathered} A=24000\cdot(1+(0.03)/(365))^(365\cdot3) \\ \\ A=24000\cdot1.09417=26260 \end{gathered}

So, the answer will be the balance after 3 years = $26,260

User Iskandarblue
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2.9k points
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