Oliver invested $53,000 in an account paying an interest rate of 2.7% compounded daily. Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 20 years?

Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
icon
Related questions
Question
NEAREST TENTH AND ACCURATE pls alot have been wrong
**Investment Problem Scenario**

Oliver invested $53,000 in an account paying an interest rate of 2.7% compounded daily. Assuming no deposits or withdrawals are made, how much money, *to the nearest cent*, would be in the account after 20 years?

**Explanation of Compound Interest Calculation:**

In this scenario, compound interest is calculated using the formula:

\[ A = P \left(1 + \frac{r}{n}\right)^{nt} \]

Where:
- \( A \) is the amount of money accumulated after n years, including interest.
- \( P \) is the principal amount ($53,000).
- \( r \) is the annual interest rate (decimal) (0.027).
- \( n \) is the number of times that interest is compounded per year (365 for daily compounding).
- \( t \) is the time the money is invested for in years (20).

Using this formula, you can calculate the final amount after 20 years with daily compounding.
Transcribed Image Text:**Investment Problem Scenario** Oliver invested $53,000 in an account paying an interest rate of 2.7% compounded daily. Assuming no deposits or withdrawals are made, how much money, *to the nearest cent*, would be in the account after 20 years? **Explanation of Compound Interest Calculation:** In this scenario, compound interest is calculated using the formula: \[ A = P \left(1 + \frac{r}{n}\right)^{nt} \] Where: - \( A \) is the amount of money accumulated after n years, including interest. - \( P \) is the principal amount ($53,000). - \( r \) is the annual interest rate (decimal) (0.027). - \( n \) is the number of times that interest is compounded per year (365 for daily compounding). - \( t \) is the time the money is invested for in years (20). Using this formula, you can calculate the final amount after 20 years with daily compounding.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Calculus: Early Transcendentals
Calculus: Early Transcendentals
Calculus
ISBN:
9781285741550
Author:
James Stewart
Publisher:
Cengage Learning
Thomas' Calculus (14th Edition)
Thomas' Calculus (14th Edition)
Calculus
ISBN:
9780134438986
Author:
Joel R. Hass, Christopher E. Heil, Maurice D. Weir
Publisher:
PEARSON
Calculus: Early Transcendentals (3rd Edition)
Calculus: Early Transcendentals (3rd Edition)
Calculus
ISBN:
9780134763644
Author:
William L. Briggs, Lyle Cochran, Bernard Gillett, Eric Schulz
Publisher:
PEARSON
Calculus: Early Transcendentals
Calculus: Early Transcendentals
Calculus
ISBN:
9781319050740
Author:
Jon Rogawski, Colin Adams, Robert Franzosa
Publisher:
W. H. Freeman
Precalculus
Precalculus
Calculus
ISBN:
9780135189405
Author:
Michael Sullivan
Publisher:
PEARSON
Calculus: Early Transcendental Functions
Calculus: Early Transcendental Functions
Calculus
ISBN:
9781337552516
Author:
Ron Larson, Bruce H. Edwards
Publisher:
Cengage Learning