Levi invested 160 in an account paying an interest rate of 3% compounded daily. Assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 8 years?

Solution

Solution

Amount : 203.4

Solution steps

Translate the problem into an equation:

A = 160 (1 + \frac{0.03}{365})^{365 \cdot 8}

160 (1 + \frac{0.03}{365})^{365 \cdot 8} = 203.39785 \dots

Round to the nearest hundredth:

203.4

Amount : 203.4

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