Question

Find the total amount in the compound interest account.$1590 is compounded daily at a rate of 6% for 5 years. Let 1 year=365 days.

Answer 1

In this case, we'll have to carry out several steps to find the solution.

Step 01:

Data

principal = $1590

rate = 6% = 0.06

time = 5 years

amount = ?

Step 02:

compound interest (daily)

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

`A\text{ = 1590 }\cdot(1+0.06/365)^(365\cdot5)`

A = 1590 * (1.3498)

A = 2146.22

The answer is:

The total amount is $2146.22