Susan deposited $4,350 in a savings account that earns 3.5% interest compounded daily. Find the amount of...

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12. Susan deposited $4,350 in a savings account that earns 3.5% interest compounded daily. Find the amount of interest she will earn after 80 days. Use the table below.
- $4,365.71
- $4,383.50
- $4,465.72
- $4,401.27

SnapAndSolve AI · Accepted Answer

To find the amount of interest Susan will earn after 80 days, we need to use the value from the table for 80 days at 3.5% interest compounded daily. The value of (1 + i)^n for 80 days is 1.007996970.

Calculate the future value using the formula:

Future Value = Principal × (1 + i)^n

Future Value = $4,350 × 1.007996970 = $4,384.50

The amount of interest earned is:

Interest = Future Value - Principal

Interest = $4,384.50 - $4,350 = $34.50

The correct answer is $4,383.50.

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Susan deposited $4,350 in a savings account that earns 3.5% interest compounded daily. Find the amount of...

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