Problem

Oliver invested $\$ 53,000$ in an account paying an interest rate of $2.7 \%$ compounded daily. Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 20 years?

Solution

Step 1 :Given: P = 53000, r = 0.027, n = 365, t = 20

Step 2 :Use the compound interest formula: A = P(1 + r/n)^(nt)

Step 3 :Calculate A: A = 53000(1 + 0.027/365)^(365*20)

Step 4 :A = 90946.54732793447

Step 5 :Round A to the nearest cent: \(\boxed{90946.55}\)

From Solvely APP
Source: https://solvelyapp.com/problems/37698/

Get free Solvely APP to solve your own problems!

solvely Solvely
Download