Answer:
Step-by-step explanation:
Given that:
Principal = $650
Interest rate, r = 2.3% = 0.023 compounded daily
Time, t it takes for final amount, A to reach $880
Using the relation :
A = P(1 + r/n)^nt
n = number of times compounded per period
Hence, n = 365
880 = 650(1 + 0.023/365)^365t
880/650 = 1.0000630^365t
1.3538461 = 1.0000630^365t
Take the log
0.1315692 = 0.0000273596 * 365t
0.1315692 = 0.0099862t
t = 0.1315692 / 0.0099862
t = 13.175101
t = 13.18 years a
