Question

Deangelo deposited $9350 into a savings account for which interest is compounded daily at a rate of 2.58%. How much interest will he earn after 12 years

Answer 1

The interest earned after 12 years will be approximately $3383.26.

Step-by-step explanation:

To calculate the interest earned, we can use the formula for compound interest: A = P(1+r/n)nt - P, where A is the final amount, P is the initial principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.

In this case, Deangelo deposited $9350, the interest rate is 2.58% (or 0.0258), and interest is compounded daily, so n = 365. Plugging in these values, we have A = 9350(1+0.0258/365)365*12 - 9350.

Calculating this, we find that Deangelo will earn approximately $3383.26 in interest after 12 years.

Answer 2

To calculate the interest Deangelo will earn after 12 years, use the formula: Interest = Principal × (1 + Rate)^(Time) - Principal. After plugging in the provided values, the interest is approximately $3,968.67.

Step-by-step explanation:

To calculate the interest Deangelo will earn after 12 years, we can use the formula:

Interest = Principal × (1 + Rate)^(Time) - Principal

Where:

• Principal = $9350 (the initial deposit)
• Rate = 2.58% or 0.0258 (converted to decimal)
• Time = 12 years

Plugging in the values, we get:

Interest = $9350 × (1 + 0.0258)^(12) - $9350

Using a calculator, we find that the interest Deangelo will earn after 12 years is approximately $3,968.67.