Question

9. When Catwoman was born in 1884, her grandparents deposited [P] $250 into an account that pays an interest

rate of 53% [r] compounded daily [n]. If she didn't add or remove money from the account, how much was
in the account in 1899?.

Answer 1

Explanation:

To calculate how much money was in Catwoman's account in 1899, we can use the compound interest formula:

A = P(1 + r/n)^(nt)

Where:

A = the final amount in the account

P = the initial principal (the deposit)

r = the annual interest rate (as a decimal)

n = the number of times the interest is compounded per year

t = the number of years

In this case, we have:

P = $250

r = 53% = 0.53 (as a decimal)

n = compounded daily, so n = 365

t = 1899 - 1884 = 15 years

Now, plug these values into the formula:

A = 250(1 + 0.53/365)^(365*15)

A ≈ 250(1 + 0.00145205)^(5475)

A ≈ 250(1.00145205)^5475

A ≈ 250 * 15.9177333

A ≈ $3,979.43

So, in 1899, there was approximately $3,979.43 in Catwoman's account if she didn't add or remove money from it.