Answer:
[tex]A=\$34,430[/tex]Explanation: The principal amount of $11,000 Is deposited in an account and it is compounded on daily basis at the interest rate of 3%, the formula used to solve this problem is as follows:
[tex]\begin{gathered} A=P(1+\frac{r}{n})^{n\cdot t}\Rightarrow(1) \\ P\Rightarrow\text{ Initial amount} \\ n\Rightarrow\text{ Number of times compounded per time-period} \\ r\Rightarrow\text{ Interest rate} \\ t\Rightarrow\text{ Time period} \end{gathered}[/tex]Substituting the knowns in the formula (1) gives the answer as follows:
[tex]\begin{gathered} A=(11000)\cdot(1+\frac{0.03}{365})^{(365\cdot38)}=(11000)\cdot(3.13)=34,430 \\ A=\$34,430 \end{gathered}[/tex]So after 38 years, the amount in the account will be $34,430.
