Question

Mike and Julie receive $20,000 in gifts from friends and relatives for their wedding. They deposit the money into an account that pays 2.75% interest, compounded daily.
Will their money double within 10 years?

Will their money double within 15 years?

Answer 1

Answer:

A= P(1+r/n)^nt

P=20,000

r=2.75%/100=0.0275

n=365

t= 10 and 15

Will their money double within 10 years?

A=20,000(1+0.0275/365)^365t

=20,000(1.00007534)^365(10)

=26,330.340 --> $26,330.34

No

Will their money double within 15 years?

A=20,000(1+0.0275/365)^365t

=20,000(1.00007534)^365(15)

=30,211.321 --> $30,211.32

No

Step-by-step explanation: