Use the compound interest formula for compounding more than once a year to determine the accumulated balance afterthe stated period.
-$\$ 12,000$ deposit at an APR of $3 \%$ with daily compounding for 10 years

Question

Quizplus · Accepted Answer

The compound interest formula for compounding more than once a year is $A = P(1 + \frac{r}{n})^{nt}$, where $A$ is the amount of money accumulated after $n$ years, including interest, $P$ is the principal amount (the initial amount of money), $r$ is the annual interest rate (decimal), $n$ is the number of times that interest is compounded per year, and $t$ is the time the money is invested for in years. For daily compounding, $n = 365$. Plugging in the given values: $P = \$12,000$, $r = 3\% = 0.03$, $n = 365$, and $t = 10$, we get $A = 12000(1 + \frac{0.03}{365})^{365*10}$, which calculates to approximately \$16,198.30.

Use the Compound Interest Formula for Compounding More Than Once $12,000\$ 12,000$12,000

Use the Compound Interest Formula for Compounding More Than Once $\$ 12,000$