The return on investment for Katerine's account = 9.4%
Explanation:Amount invested is the principal
Principal, P = $6,100
Annual Interest Rate, r = 4.5% = 0.045
The interest is compounded daily
Number of times the interest is compounded per year, n = 365
Number of years, t = 2 years
The amount after 2 years is calculated as:
[tex]\begin{gathered} A(t)=P(1+\frac{r}{n})^{nt} \\ A=6100(1+\frac{0.045}{365})^{365(2)} \\ A=6100(1.094) \\ A=6673.4 \end{gathered}[/tex]The amount after 2 years = $6673.4
The interest = Amount - Principal
The interest = $6673.4 - $6100
The interest = $573.4
The return on investment is calculated as:
[tex]\begin{gathered} \text{ROI = }\frac{Interest}{Pr\text{incipal}}\times100\text{ \%} \\ \text{ROI}=\frac{573.4}{6100}\times100\text{ \%} \\ \text{ROI = }9.4\text{ \%} \end{gathered}[/tex]The return on investment for Katerine's account = 9.4%
