Final answer:
The question involves calculating the future value of a $35,000 investment using the compound interest formula, considering a 12% annual interest rate that is compounded daily over 4 years.
Step-by-step explanation:
Priscilla wants to know how much money she will have in her account after 4 years if she deposits $35,000 into an account with an annual interest rate of 12%, compounded daily. To calculate the future value of her investment, we can use the compound interest formula: A = P(1 + r/n)^(nt), where:
- A is the amount of money accumulated after n years, including interest.
- P is the principal amount (the initial amount of money).
- r is the annual interest rate (decimal).
- n is the number of times that interest is compounded per unit t.
- t is the time the money is invested for in years.
In Priscilla's case, P = $35,000, r = 0.12 (since 12% as a decimal is 0.12), n = 365 (because the interest is compounded daily), and t = 4 years. Plugging these values into the formula will give us the total amount in the account after 4 years. Calculating this, we get:
A = 35000(1 + 0.12/365)^(365*4)
After performing the calculation, we can round the result to the nearest cent to find how much money Priscilla should expect in the account at the end of the 4 years.