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15 votes
15 votes
Brian deposited $3,376 into a savings account for which interest is compoundeddaily at a rate of 2.49%. How much interest will he earn after 11 years? Roundanswer to the hundredths place. If answer does not have a hundredths place theninclude zeros so it does.

User Paul Plato
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1 Answer

13 votes
13 votes

\begin{gathered} A=P(1+(r)/(365))^(365t)^ \\ A=\text{ \$3376 \lparen1 + }(0.0249)/(365))^(365(11)) \\ A=\text{ \$3376 \lparen1.000068\rparen}^(4015) \\ A=\text{ \$3376\lparen1.315\rparen} \\ A=\text{ \$4439.44} \end{gathered}

If they ask how much interest then: 4439.44 - 3376 = $1063.44

User Santosh Gokak
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3.0k points
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