Using Compound interest formula:
The exponential function for calculating the amount of money after t years, A(t), where P is the initial amount or principal, the annual interest rate is r and the number of times interest is compounded per year is n, is given by
[tex]A(t) = p(1+ \frac{r}{n} )^{nt} [/tex]
from the given information:
p = 2,310 , r = 0.035 ,
compounded daily ⇒⇒⇒ n =365
To calculate the time : deposited April 12 and withdrawn July 5
t = 2 months and 23 days = 83 days = 83/365 years
∴ n t = 365 * 83/365 = 83
Amount =
[tex]A(t) = 2310(1+ \frac{0.035}{365} )^{83} [/tex] = 2,328.46
The interest earned = 2,328.6458 - 2,310 = 18.46
