Answer:
A) Amount = $ 116,601.31
B) Compound Interest = $ 91,601.31
Step-by-step explanation:
Compound interest Formula
A = P(1 + r/n)^nt
Where
P = Initial amount invested = $25,000
r = interest rate = 5.5 %
n = Compounding frequency = daily
t = time in years = 28 years
A). What amount will he have in his account 28 years later ?
First, convert R percent to r a decimal
r = R/100
r = 5.5%/100
r = 0.055 per year,
Then, solve our equation for A
A = P(1 + r/n)^nt
A = 25,000.00(1 + 0.000150685/365)^(365)(28)
A = $ 116,601.31
B.) How much will be compound interest ?
I = Amount - Principal
A(Amount ) = $ 116,601.31
P (principal) = $ 25,000.00
I = $ 116,601.31 - $ 25,000.00
I (interest) = $ 91,601.31
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