solve math equation

Question

Find the ending balance if $750 was deposited at 7% annual interest compounded daily for 3 years.

Answer 1

The formula for compound interest is,

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

Where,

A=ending balance

P=principal =$750

r =annual interest rate=7% or 0.07

n=number of times interest is compounded per year (daily, so 365)

t=number of years =3

Substituting these values in the formula:

A=750*(1+0.07/365)^365*3

A=750*(1+0.000192)¹⁰⁹⁵

A=750*(1.000192)¹⁰⁹⁵

A=750*1.233653

A=925.24

The ending balance after 3years, with daily compounding at a 7% annual interest rate, is approximately $925.24.

Answer 2

Hello, thank you for taking the time to post your question!

The general formula for compound interest is A = P(1 + r/n)^(nt)

So it’s just a matter of identifying those values from the information in the question and then simplifying. For this one it would be

A = 750(1 + 0.07/365) ^ (365 * 3)

A = 925.24

So the ending balance at the end of the 3 years would be $925.24

I hope that helps get you moving in the right direction! Feel free to reach out if you still have questions beyond that :)

Answer 3

Using this formula: A=P(1+r/n)^nt

^{A is the product}

P is the principal amount : 750

r is the rate at which it compounds: .07

n is the number of times which it compounds: 365

t is the amount of time over which it compounds: 3

transforming the formula into: A = 750(1+.07/365)^365x3

then the division is first A=750(1+.00019)^365x3

now the parenthetical equation

A=750(1.00019)^365x3

now the exponential equation firstly multiplying the n and t value

A=750(1.00019)¹⁰⁹⁵

now the exponential equation

A=750x1.2336

which results in

A= 925.2 or more specifically 925.24