Question

Jocelyn invested $390 in account paying an interest rate of 2.7% compounded daily. Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 18 years

Answer 1

The amount of money in the account after 18 years is approximately $629.06.

Step-by-step explanation:

To calculate the amount of money in the account after 18 years, we can use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal amount, r is the interest rate, n is the number of times interest is compounded per year, and t is the time in years.

In this case, the principal amount is $390, the interest rate is 2.7%, and the interest is compounded daily, so n = 365. Plugging in these values into the formula, we get:

A = $390(1 + 0.027/365)^(365*18)

Simplifying this expression, we find that the amount of money in the account after 18 years is approximately $629.06, to the nearest cent.