Question

Levi invested $5,300 in an account paying an interest rate of 2.4% compounded daily. Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 6 years?

Answer 1

making the assumption that "daily" will stand for 365days per year, so the compounding period will just be 365, so

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$5300\\ r=rate\to 2.4\%\to (2.4)/(100)\dotfill &0.024\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{assuming a 365days year} \end{array}\dotfill &365\\ t=years\dotfill &6 \end{cases} \\\\\\ A=5300\left(1+(0.024)/(365)\right)^(365\cdot 6)\implies A\approx 6120.86`