Question

Your friend deposits $1000 in an investment account that earns 8.5% annual interest. Find the balance after 13 years when the interest is compounded daily. Round your answer to the nearest cent.

Answer 1

The balance after 13 years will be $ 3,018.84.

Explanation:

Given that my friend deposits $ 1000 in an investment account that earns 8.5% annual interest, to find the balance after 13 years when the interest is compounded daily, the following calculation must be performed:

1,000 x (1 + 0.085 / 365) ^ 13x365 = X

1,000 x (1 + 0.0002328) ^ 4,745 = X

1,000 x 3.01884 = X

3,018.84 = X

Therefore, the balance after 13 years will be $ 3,018.84.