If Gabriel deposits $19,500 in a savings account that earns 1.5% interest per year compounded daily, how much money can he expect to be in the account in 6 years? Round your answer to two decimal places.

Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount ($19,500), r is the annual interest rate (1.5% or 0.015), n is the number of times that interest is compounded per year (365, since it's compounded daily), and t is the time the money is invested for (6 years). Plugging these values into the formula gives A = $19,500(1 + 0.015/365)^(365*6), which calculates to approximately $21,336.36.

If Gabriel Deposits $19,500 in a Savings Account That Earns