hannahw001
contestada

PLEASE PLEASE PLEASE HELP. I have this class really soon.

You deposit $9000 into a bank account that pays 1 46% annual interest compounded daily How much interest does the account earn after 3 years?

Respuesta :

boomboam123
interest is compounded quarterly. SOLUTION. i think i relly just looked it up srry if it isn't right 
This can be solved with the equation
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
where A is the new/resulting balance

insert your interest r=0.0146
the starting amount P=9000
the number of times it gets compounded per year n=365 (every day)
and the number of years t=3

insert everything and calculate the balance in 3 years:
[tex]A=9000(1+\frac{0.0146}{365} )^{365*3} \\ =9000(1.00004)^{365*3} \\ =9000*1.0447...\\ =9402.95[/tex]


the amount earned over 3 years is then the new balance- the current balance:
9402.95-9000=402.95$ earned over 3 years


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