use the appropriate compound interest formula to compute the balance in the account after the stated period of time. 17000 dollars is invested for 2 years with an APR of 4.2% and daily compounding. what is the balance in the account after 2 years

Solution

u se t h e a pp ro p r ia t e co m p o u n d in t eres t f or m u l a t o co m p u t e t h e ba l an ce in t h e a cco u n t a f t er t h e s t a t e d p er i o d o f t im e . 17000 d o ll a rs i s in v es t e d f or 2 ye a rs w i t h an A PR o f 4.2% an d d ai l y co m p o u n d in g . w ha t i s t h e ba l an ce in t h e a cco u n t a f t er 2 ye a rs

Amount : 18489.6

Solution steps

Translate the problem into an equation:

A = 17000 (1 + \frac{0.042}{365})^{365 \cdot 2}

17000 (1 + \frac{0.042}{365})^{365 \cdot 2} = 18489.60184 \dots

Round to the nearest hundredth:

18489.6

Amount : 18489.6