Question

Maddelein deposited $750 into an investment account that earns 1.5% daily compounded interest after year how much money will be in the account

Answer 1

1285.37

You can use the formula for compound interest:

P(1+R)^t

P = the principle, the amount of money

(1+R) = the rate, (%) as a decimal plus 1

^t = to the power of the number of years

Substitute the values:

750(1+0.08)^7

750(1.08)^7

1285.37

Explanation: