Question

If you deposit $10,000 at 3.85% interest, compounded daily, what would your ending balance be after three years?

Answer 1

Answer: $11,155

Step-by-step explanation: For this problem, first we will use the "Simple Interest" equation to find the total interest earned after three years.

First, convert 3.85% to a decimal, 0.0385.

I, interest = 10,000 x 0.0385 x 3

I = 1,155

Now add the total interest $1,155 to the total deposit $10,000.

1,155 + 10,000 = $11,155