Suppose you deposited $27,000 in a bank account that pays 5.25% with daily compounding based on a 360-day year.How much would be in the account after 8 months,assuming each month has 30 days?

Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt). Here, P = $27,000, r = 0.0525, n = 360, and t = 240/360 (since 8 months is 240 days). Plugging these values into the formula gives approximately $27,961.66.

Suppose You Deposited $27,000 in a Bank Account That Pays