## Precalculus: Concepts Through Functions, A Unit Circle Approach to Trigonometry (3rd Edition)

Published by Pearson

# Chapter 4 - Exponential and Logarithmic Functions - Section 4.7 Financial Models - 4.7 Assess Your Understanding - Page 346: 11

$\$ 697.09$#### Work Step by Step Recall:$A = P \left(1+\dfrac{r}{n} \right)^{n t}$where$P:$The principal amount$r:$Annual interest rate$n:$Number of compoundings per year$t:$Number of years$A:$Amount after$t$years The given problem has:$P= \$600, r=0.05, t = 3$ $\text{Compounded daily} \to n = 365$ Thus, using these values and the given formula above gives: $A = 600 \left(1+\dfrac{0.05}{365} \right)^{365 \times 3}$ $A \approx \$ 697.09\$

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