# Chapter 6 - Section 6.7 - Financial Models - 6.7 Assess Your Understanding: 11

\$697.09

#### Work Step by Step

We know the following equation: $$A=P(1+ \frac{r}{n})^{nt}$$ Where: P is the principal. 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: $$A=600(1+ \frac{.05}{365})^{365*3}\\ A= 697.09$$

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