Question

If you deposit $878.00 at 14.66% annual interest compounded daily, how much money will be in the account after 20.0 years? (Assume that there are 364 days in a year and show your answer to the nearest cent)

Answer 1

The amount of money in the account after 20 years with a 14.66% annual interest rate compounded daily is approximately $5,025.34.

Step-by-step explanation:

To calculate the amount of money in the account after 20 years with a 14.66% annual interest rate compounded daily, we can use the formula for compound interest:

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

Where:

• A is the amount of money in the account after t years
• P is the principal amount, which is $878.00 in this case
• r is the annual interest rate as a decimal, which is 14.66% or 0.1466
• n is the number of times the interest is compounded per year, which is 365 (daily)
• t is the number of years

Substituting the given values into the formula:

A = 878(1 + 0.1466/365)^(365*20)

Calculating the expression, the amount of money in the account after 20 years is approximately $5,025.34 when rounded to the nearest cent.