Respuesta :
Answer:
There will be $634.05 in the account.
Step-by-step explanation:
Compound interest:
The compound interest formula is given by:
[tex]A(t) = P(1 + \frac{r}{n})^{nt}[/tex]
Where A(t) is the amount of money after t years, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per year and t is the time in years for which the money is invested or borrowed.
$390 in an account paying an interest rate of 2.7% compounded daily.
This means that [tex]P = 390, r = 0.027, n = 365[/tex]
Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 18 years?
This is A(18). So
[tex]A(t) = P(1 + \frac{r}{n})^{nt}[/tex]
[tex]A(18) = 390(1 + \frac{0.027}{365})^{365*18}[/tex]
[tex]A(18) = 634.05[/tex]
There will be $634.05 in the account.
