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35 votes
35 votes
Find the total amount

$1580 is compounded daily at a rate of 10% for 7 years. Let 1 year = 365 days.

User Piotr Rochala
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1 Answer

18 votes
18 votes

Answer:

$3181.42

Explanation:

The balance of an account earning compound interest is given by the formula ...

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

where P is the principal invested at annual rate r for t years, compounded n times per year.

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You have P=1580, r=0.10, n=365, t=7, so the balance is ...

A = $1580(1 +0.10/365)^(365×7) ≈ $3181.42

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Additional comment

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Find the total amount $1580 is compounded daily at a rate of 10% for 7 years. Let-example-1
User Yes Barry
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