Business math word problem

Question

Jim Jones deposited $19,000 in a savings account at 7% interest compounded daily. At the end of 6 years what is the balance in Jim's account?

Answer 1

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

Where P = 19000

r = .07

and n = 365

and t = 6

A = 19000(1 + .07/365)^{365 * 6}

A = 19000(1.000191781)²¹⁹⁰

A = 19000(1.52190027)

A = 28916.11

Answer 2

Compound interest:  A=P(1+r/n)^nt

A= future amount

P= principal investment=$19,000

r= interest rate as a decimal=.07

n=number of times compounded annually=365

t= time in years=6

 

A=19000(1+.07/365)³⁶⁵⁽⁶⁾

  =$28,916.10