Question

When Jason was 16 years old, he deposited $200 in an account that earned 223% interest compounded daily. If he makes no other deposits or withdrawals, what is Jason’s balance at age 20?

Answer 1

Balance at the age of 20 will be $1455966.46

Explanation:

Formula to calculate the final amount is,

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

Where A = Final amount

P = Principal amount or amount invested

A = Final amount

r = Rate of interest

n = Number of compounding in a year

If Jason invested $200 in an account for 4 years with rate of interest 223%.

P = $200

r = 223%

n = 365

t = 4 years

A =
`200(1+(2.23)/(365))^((4* 365))`

A =
`200(1.0061096)^(1460)`

A = $1455966.46

Therefore, balance amount in Jason's account at the age of 20 will be $1455966.46.