Question

PLS HELP ME

Answer 1

Interest on interest, or compound interest, is the adding of interest to the principal sum of a loan or deposit. Mike's account balance after 21 years is $69,131.44.

What is compound interest?

Interest on interest, or compound interest, is the adding of interest to the principal sum of a loan or deposit. It's the outcome of reinvesting interest rather than paying it out so that interest is received on the principal plus previously collected interest in the next quarter.,

$A = P(1+ \dfrac{r}{n})^{nt}$

where A is the final amount

P is the principal amount

r is the rate of interest

n is the number of times interest is charged in a year

t is the number of years

The principal amount that Mike invested is $29,000. The rate of interest is 7.24% compounded daily, for 21 years. Therefore, the account balance after 21 years is

$\text{Account Balance after 21 years} = 29,000(1+\dfrac{0.0724}{365})^{(365 \times 21)}$

                                                     = $69,131.44

Hence, Mike's account balance after 21 years is $69,131.44.

Learn more about Compound Interest:

brainly.com/question/25857212

#SPJ1