Problema Solution
An individual retirement account has $11,000 in it, and the owner decides not to add more money to the account?
other then interest earned at 7% compounded daily. How much will be in the account 34 years from now when the owner reaches retirement age? Round to the nearest cent.
Answer provided by our tutors
You need the compound interest formula.
A=P*(1+r/n)^(n*t)
n is 365 assuming it is a normal year since there are 365 days in an year
t is 35
r is 7/100 since it is 7%
and P is 11000.
Plugging in the numbers you get: ($11000)*(1+.07/365)^(365*35)=$127,441.8
Final answer: $127,441.87