Question

Zoey invested $230 in an account paying an interest rate of 6.3% compounded daily.

Answer 1

Answer:

500

Step-by-step explanation:

Answer 2

Answer:

A ≈ $500

General Formulas and Concepts:

Pre-Alg

• Order of Operations: BPEMDAS

Algebra I

Compounded Interest Rate: A = P(1 + r/n)ⁿˣ

• A is final amount
• P is initial (principle) amount
• r is rate
• n is number of compounds
• x is number of years

Step-by-step explanation:

Step 1: Define

P = 230

r = 0.063

n = 365

x = 12

Step 2: Solve for A

1. Substitute:                    A = 230(1 + 0.063/365)³⁶⁵⁽¹²⁾
2. Divide:                          A = 230(1 + 0.000173)³⁶⁵⁽¹²⁾
3. Multiply:                        A = 230(1 + 0.000173)⁴³⁸⁰
4. Add:                              A = 230(1.00017)⁴³⁸⁰
5. Exponents:                   A = 230(2.1296)
6. Multiply:                        A = 489.808