Suppose we deposit $73,000 into a savings account which compounds daily with 5% APY and we want to know how much the account wil

Question

Lilit [14]

2 years ago

10

Suppose we deposit $73,000 into a savings account which compounds daily with 5% APY and we want to know how much the account wil

l be worth after two days.

Mathematics

1 answer:

NARA [144] · Answer 1 · 2022-01-15T01:20:28+03:00

Let
I1-------------> interest first day
I2-------------> interest second day

we know that
P0=$73000----------> initial amount

first day
I1=73000*(5%/100)*(1/365)-----------> I1=$10
P1=P0+I1------> $73000+$10-------- P1=$73010

second day
P1=$73010
I2=73010*(5%/100)*(1/365)-----------> I2=$10
P2=P1+I2------> $73010+$10-------- P2=$73020

the answer is $73020