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Popular Word Problems >

You deposit 500 dollars in an account that pays 2.5 percent annual interest. Find the balance after 2 years where the interest is compounded daily.

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Solution

Youdeposit500dollarsinanaccountthatpays2.5percentannualinterest.Findthebalanceafter2yearswheretheinterestiscompoundeddaily.

Solution

Interest:25.63
Solution steps
Translate the problem into an equation:525.63=500+I
Solve for I,525.63=500+I:I=25.63
Interest:25.63

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