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kupik [55]
2 years ago
12

Calculate the account balance for $800 left on deposit for 255 days earning 5.25% compounded daily.

Mathematics
1 answer:
Svetradugi [14.3K]2 years ago
3 0
The value would be 829.89.

The formula we use is 

A=p(1+\frac{r}{n})^{nt},

where A is the total amount, p is the principal, r is the rate expressed as a decimal number, n is the number of times per year the interest is compounded, and t is the number of years. 

We will use 800 for p; 5.25/100 = 0.0525 for r; 365 for n; and (255/365) for t (since it is not a full year):
A=800(1+\frac{0.0525}{365})^{\frac{255}{365}\times365}
\\
\\=800(1+\frac{0.0525}{365})^{255}=829.89
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