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Wanda opened a savings account 20 years ago with a deposit of $3,150.37. The account has an interest rate of 4.1% compounded daily. How much interest has Wanda earned?

Verified Answer :

ebioa

take the interest rate and divided by 365
new interest ......> 0.041/365 = (0.0001123 )
if you need to know the future value = 3,150.37(1.0001123^(20365)-1) /0.0001123 = 230981.5216
do it again in your own

Answer:

$4002.215

Step-by-step explanation:

Principal =  $3,150.37.

Time = 20 years

The account has an interest rate of 4.1% compounded daily.

So, r = 0.041

No. of compounds per year = 365

Formula : \(A=P(1+\frac{r}{n})^{nt}\)

\(A=3150.37(1+\frac{0.041}{365})^{365 \times 20}\)

\(A=7152.5851794\)

Interest =Amount - Principal = 7152.5851794 - 3150.37=$4002.215

Hence Wanda earned $4002.215 as interest

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