use the appropriate compound interest formula to compute the balance in the account after the stated period of time. 23000 dollars is invested for 6 years with an APR of 3% and daily compounding. what is the balance in the account after 6 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 . 23000 d o ll a rs i s in v es t e d f or 6 ye a rs w i t h an A PR o f 3% 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 6 ye a rs

Amount : 27535.8

Solution steps

Translate the problem into an equation:

A = 23000 (1 + \frac{0.03}{365})^{365 \cdot 6}

23000 (1 + \frac{0.03}{365})^{365 \cdot 6} = 27535.79567 \dots

Round to the nearest hundredth:

27535.8

Amount : 27535.8