Christy M.

asked • 07/16/18

# How much money will Bill have in the account in 7 years?

A bank features a savings account that has an annual interest rate of r=5.3% with interest compounded daily. Bill deposits $8,500 into the account. The account balance can be modeled by the exponential formula A(t)=P(1+r/n)^nt , where A is the future value, P is the principal, r is the annual interest rate, n is the number of times each year that the interest is compounded, and t is the time (in years). 1) What values should be used for P, r, and n? P=, r=, n= 2) How much money will Bill have in the account in 7 years? Bill will have$___ in the account in 7 years.

## 1 Expert Answer

By: Tracey M. answered • 07/16/18

Tutor
4.8 (31)

BBA in Actuarial Science ,33+ years as math tutor, Assoc Sociey of Act

## Still looking for help? Get the right answer, fast.

Get a free answer to a quick problem.
Most questions answered within 4 hours.

#### OR

Choose an expert and meet online. No packages or subscriptions, pay only for the time you need.