Question

Help me solve these problems please

Answer 1

Principal amount is $1510, so P = 1,510 dollars.

Compounding period is daily, so N = 365.

Interest rate is 12%, so r = 0.12

Time of investment is 3 years, so t = 3 years.

We can use compound interest formula as given below :-

Amount = $P*(1+\frac{r}{N} )^{(N*t)}$

$Amount=1510*(1+\frac{0.12}{365} )^{(365*3)} \\\\Amount=1510*(1+0.000328767 )^{(1095)} \\\\Amount=1510*(1.000328767 )^{(1095)} \\\\Amount=1510*(1.433244609) \\\\Amount=2164.199359 \approx 2164.20 \;dollars$

Hence, total amount in account would be 2,164.20 dollars.