4.Find the interest earned. Assume 3.5% interest compounded daily.$2,310 deposited April 12 and withdrawn July 5$17.34$18.68$18.46$17.12
Accepted Solution
A:
Using Compound interest formula:
The exponential function for calculating the amount of money after t years, A(t), where P is the initial amount or principal, the annual interest rate is r and the number of times interest is compounded per year is n, is given by [tex]A(t) = p(1+ \frac{r}{n} )^{nt} [/tex]
from the given information: p = 2,310 , r = 0.035 , compounded daily ⇒⇒⇒ n =365 To calculate the time : deposited April 12 and withdrawn July 5 t = 2 months and 23 days = 83 days = 83/365 years ∴ n t = 365 * 83/365 = 83