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pantera1 [17]
3 years ago
14

9.

Mathematics
1 answer:
Mashcka [7]3 years ago
4 0
To solve this we are going to use the formula for compounded interest: A=P(1+ \frac{r}{n})^{nt}
where 
A is the final amount after t years 
P is the initial amount 
r is the interest rate in decimal form 
n is the number of times the interest is compounded per year
t is the time in years 

We know for our problem that P=1380, r= \frac{5}{100} =0.05, and t=3. Since the interest is compounded daily, it is compounded 365 times in year; therefore, n=365. Lets replace those values in our formula to find A:
A=P(1+ \frac{r}{n})^{nt}
A=1380(1+ \frac{0.05}{365})^{(365)(3)}
A=1603.31

We can conclude the amount in Diane's after 3 years will be <span>$1,603.31</span>
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