Hattie has recently inherited 8100, which she wants to deposit into an IRA account which compounds daily at an annual rate of 5.1%. How much would Hattie's balance be over 3.4 years? Round to two decimal places.

Solution

Solution

Amount : 9633.55

Solution steps

Translate the problem into an equation:

A = 8100 (1 + \frac{0.051}{365})^{365 \cdot 3.4}

8100 (1 + \frac{0.051}{365})^{365 \cdot 3.4} = 9633.55145 \dots

Amount : 9633.55145 \dots

Round

9633.55145 \dots

to the nearest 2 decimal places:

9633.55

Amount : 9633.55

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