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WHAT IS P=22,000, Y=4 YEARS N= 365 DAYS AND APR =0.03, THE BALANCE IN THE ACCOUNT AFTER FOUR YEARS=

 Nov 2, 2014

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 #1
avatar+23254 
+5

I am assuming that you included n = 365 to mean that it is compounded 365 times a year.

The compound interest formula is:    A  =  P(1 + r/n)^(n·t)

A = Final Amount         P = Beginning Amount = 22,000         r = rate (as a decimal) = 0.03

n = number of times compounded per year = 365         t = number of years = 4

A  =  22000(1 + 0.03/365)^(365·4)    =    24,804.81

 Nov 2, 2014
 #1
avatar+23254 
+5
Best Answer

I am assuming that you included n = 365 to mean that it is compounded 365 times a year.

The compound interest formula is:    A  =  P(1 + r/n)^(n·t)

A = Final Amount         P = Beginning Amount = 22,000         r = rate (as a decimal) = 0.03

n = number of times compounded per year = 365         t = number of years = 4

A  =  22000(1 + 0.03/365)^(365·4)    =    24,804.81

geno3141 Nov 2, 2014

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