Answer:
the interest rate required in order for Josiah to end up with $5,400, assuming the interest is compounded daily, is 10.3%
Explanation:
To solve this problem, we can use the formula for compound interest:
A = P(1 + r/n)^nt
Where:
A = the amount of money in the account after the interest has been added
P = the initial investment (principal) of $4,800
r = the annual interest rate (expressed as a decimal)
n = the number of times the interest is compounded per year
t = the number of years the money is left in the account
We know that A = $5,400 and t = 6 years, so we can substitute these values into the formula:
5400 = 4800(1 + r/n)^(6n)
To find the interest rate, we need to solve for r.
we know that the interest is compounded daily, so we will use n = 365
5400 = 4800(1 + r/365)^(6*365)
To find the interest rate, we need to solve for r, we can use a calculator to find the value of r.
r ≈ 0.103 or 10.3% to the nearest tenth of a percent
So, the interest rate required in order for Josiah to end up with $5,400, assuming the interest is compounded daily, is 10.3%