Cooper invested 1,100 in an account paying an interest rate of 3.8% compounded daily. Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 10 years? Answer Attemptiout of 2

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Answer 1

To solve this problem, we need to use the formula for compound interest:

Where:-

is the amount of money in the account after

years.-

is the principal amount (initial investment), which is

is the annual interest rate (as a decimal), which is 0.038.-

is the number of times the interest is compounded per year, which is 365 (daily compounding).-

is the number of years, which is 10.Plugging in the values, we get:

First, calculate the daily interest rate:

Next, calculate the exponent:

Now, calculate the base raised to the power of 3650:

Finally, multiply this by the principal amount:

So, the amount of money in the account after 10 years, to the nearest cent, is approximately $1627.76.

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