Grace invested $5,200 in an account paying an interest rate of 4.6% compounded daily. Assuming no deposits or withdrawals are ma

Question

Lyrx

1 month ago

7

Grace invested $5,200 in an account paying an interest rate of 4.6% compounded daily. Assuming no deposits or withdrawals are ma

de, how much money, to the nearest dollar, would be in the account after 11 years?

Mathematics

1 answer:

lawyer [12.5K] · Answer 1 · 2026-03-29T17:34:29+03:00

Answer:

Step-by-step explanation:

This formula is applied when compounding isn’t continuous or occurs less frequently than annually:

$A(t)=P(1+\frac{r}{n})^{(n)(t)}$ where P represents the initial amount invested, r signifies the interest rate as a decimal, n indicates the frequency of compounding per year, and t denotes the duration in years. For our scenario:

P = 5200,

r = 0.046,

n = 365, and

t = 11

$A(t)=5200(1+\frac{.046}{365})^{(365)(11)}$ Consequently,

$A(t)=5200(1+.000126)^{4015}$ A(t) = 5200(1.658408042) leads to

A(t) = $8623.72