Question

Find the accumulated amount A if the principal P is invested at the interest rate of r/year for t years. (Use a 365-day year. Round your answer to the nearest cent.)

Answer 1

The accumulated amount, A, can be found using the formula A = P(1 + r/365)^365t

Step-by-step explanation:

The accumulated amount, A, can be found using the formula:
A = P(1 + r/365)365t

Where:
A = accumulated amount
P = principal
r = interest rate per year
t = number of years

For example, if we have a principal of $1000, an interest rate of 4% per year, and the investment is held for 3 years, we can calculate the accumulated amount as follows:

1. Convert the interest rate to a decimal: 4% = 0.04
2. Calculate the accumulated amount: A = 1000(1 + 0.04/365)365*3

Using a calculator, we find that the accumulated amount is approximately $1126.47.