Question

I NEED SOME HELP

Bobby rich dude has $120,000 in his account that pays him 5.5% compounded daily. What amount and how much interest will his money earn in 30-days?

Answer 1

Interest: Amount Gained: $198,000

Final Balance: Amount After 30 days of Interest: $318,000

Explanation:

Equation Used to Solve:

120,000 · 0.055 = 120,000 + (xy)

Let x represent 5.5% of 120,000

Let y represent the number of days.

Solving the equation:

120,000 · 0.055 = 6,600

x = 6,600; y = 30

120,000 + (6,600 · 30) = 120,000 + 198,000

120,000 + 198,000 = 318,000