Question

On August 23, Carlito Rosselini had $1,432.19 in his savings account at Camden Savings and Trust. The

account earns 5.5% interest compounded daily. What will be the amount in his savings account when he closes it on October 1?

Answer 1

1440.63

Explanation:

August 23 - October 1 = 39 days

5.5%/365 in days a year

=5.5/365%

for the amount in savings is:

= Amount x ( 1 + rate) ^ number of periods

= 1,432.19 x ( 1 + 5.5/365%)^39

= $1,440.63