Question

Phillip deposited $5,670 into a savings account 19 years ago. The account has an interest rate of 4.1% and the balance is currently $12,356.04. How often does the

interest compound?

Answer 1

$12165.97

Explanation:

100 + 4.1 = 104.1%

104.1% = 1.041

$5670 x 1.041^19 = $12165.97

Answer 2

daily

Explanation:

To answer this try plugging in each type of compund: daily, monthly, quarterly, and annually.

5670(1+0.041/365)^(365*19)

= 12356.04

365= daily

so your answer would be that the interest compounds daily.