Question

Brian deposited $3,376 into a savings account for which interest is compoundeddaily at a rate of 2.49%. How much interest will he earn after 11 years? Roundanswer to the hundredths place. If answer does not have a hundredths place theninclude zeros so it does.

Answer 1

$\begin{gathered} A=P(1+\frac{r}{365})^{365t}^ \\ A=\text{ \ 3376 \lparen1 + }\frac{0.0249}{365})^{365(11)} \\ A=\text{ \ 3376 \lparen1.000068\rparen}^{4015} \\ A=\text{ \ 3376\lparen1.315\rparen} \\ A=\text{ \ 4439.44} \end{gathered}$

If they ask how much interest then: 4439.44 - 3376 = $1063.44