College Algebra (10th Edition)

Published by Pearson
ISBN 10: 0321979478
ISBN 13: 978-0-32197-947-6

Chapter 6 - Section 6.7 - Financial Models - 6.7 Assess Your Understanding: 12

Answer

$789.24

Work Step by Step

We know the following equation: $$A=P(1+ \frac{r}{n})^{nt}$$ Where: P is the principle. A is the amount of interest. r is the rate, expressed as a decimal. t is the time, in years. n is the number of times the interest is compounded per year. Thus, we obtain: $$A=700(1+ \frac{.06}{365})^{365*2}\\ A= 789.24$$
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