Question

Shoreline Insurance deposited $27,000 in an account paying 4 compounded daily on April 2 and deposited an additional $4,200 in the account on May 12. Find the balance on July 1.

Answer 1

Answer:

Balance on balance on July 1 is $31490.67

Explanation:

given data

deposited P =  $27,000

time = April 2  to May 12 = 40 days

rate = 4 % = 0.04

solution

we get here first compound amount that is express as

amount = P × $(1+\frac{r}{n})^{nt}$     ...................1

put her value

amount = 27000 ×  $(1+\frac{0.04}{365})^{(365\times \frac{40}{365})}$  

amount = $27118.60

and

now we add here $4,200 in $27118.60 that will be

new principal P = $31318.60

and time t = 12 may to July 1 = 50 days

we get here amount that is put value in equation 1 we get

amount = $31318.60 ×  $(1+\frac{0.04}{365})^{(365\times \frac{50}{365})}$

solve it we get

amount = $31490.67

so that balance on balance on July 1 is $31490.67