Answer:
The account balance is approximately $13771.53
Explanation:
The formula for compound interest is given by:
A = P(1 + r/n)^(nt), where
- A is the amount in the account,
- P is the principal,
- r is the interest rate (the percentage is always converted to a decimal when using the formula),
- n is the number of compounding periods per year,
- and t is the time in years.
Note that for money compounded daily, there are 365 compounding periods since there are 365 days in a year.
Furthermore, 9.8% as a decimal is 0.098
Thus, we can plus in 10264 for P, 0.098 for r, 365 for n, and 3 for t to find the amount in the account after 3 years:
A = 10264(1 + 0.098/365)^(365 * 3)
A = 10264(1.000268493)^(1095)
A = 13771.52653
A = 13771.53
Thus, there will be approximately $13771.53 in the account after 3 years.