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Each year a cash grant is given to a deserving college student. The grant consists of the interest earned that year on a $440,000 savings account. What is the cash award for the year if the money is invested at an annual rate of 8.3%, compounded daily? (Round your answer to the nearest cent.)

Respuesta :

Answer:

The cash award will be equal;l to $444422.01

Explanation:

We have given amount invested P = $440000

Rate of interest r = 8.3%

Time t = 1 year

As the amount is compounded on daily basis

We know that 1 year = 365 days

So rate of interest [tex]r=\frac{1}{365}=0.00273[/tex] %

Time period n = 365

We know that final amount is equal to [tex]A=P(1+\frac{r}{100})^n[/tex]

So [tex]A=440000(1+\frac{0.00273}{100})^{365}=444422.01[/tex]$

So the cash award will be equal;l to $444422.01

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