MATH SOLVE

3 months ago

Q:
# Paul deposited $95,000 in a savings account that pays 4% interest compounded daily. What is his balance at the end of six months?

Accepted Solution

A:

Answer:[tex]\$96,919.02[/tex] Step-by-step explanation:we know that The compound interest formula is equal to [tex]A=P(1+\frac{r}{n})^{nt}[/tex] where A is the Final Investment Value P is the Principal amount of money to be invested r is the rate of interest in decimal
t is Number of Time Periods n is the number of times interest is compounded per year
in this problem we have [tex]t=6/12=0.5\ years\\ P=\$95,000\\ r=4\%=4/100=0.04\\n=365[/tex] substitute in the formula above [tex]A=95,000(1+\frac{0.04}{365})^{365*0.5}[/tex] [tex]A=95,000(1+\frac{0.04}{365})^{182.5}=\$96,919.02[/tex]