The following money market account rates were available from a particular bank. Find the compound amount and the interest earned.\$8000 at 1.14% compounded daily for one year.

Solution

The following money market account rates were available from a particular bank. Find the compound amount and the interest earned.$8000 at 1.14% compounded daily for one year.

Solution

Interest : 91.72

Solution steps

Translate the problem into an equation:

8091.72 = 8000 + I

Solve for

I, 8091.72 = 8000 + I : I = 91.72

Interest : 91.72

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