Find the accumulated amount A if the principal P is invested at an interest rate of r per year for t years. Round your answer to the nearest cent.
P = $150,000, r = 7%, t = 3, compounded daily

A) A = $185,051.71
B) A = $183,756.45
C) A = $184,938.84
D) A = $185,047.98

Question

Find the accumulated amount A if the principal P is invested at an interest rate of r per year for t years. Round your answer to the nearest cent. ​
P = $150,000, r = 7%, t = 3, compounded daily
​
A) A = $185,051.71
B) A = $183,756.45
C) A = $184,938.84
D) A = $185,047.98

Quizplus · Accepted Answer

Using the formula for compound interest with daily compounding, we have:

A = P(1 + r/365)^(365t)

A = 150000(1 + 0.07/365)^(365*3)

A = $185,047.98

Rounding to the nearest cent, the answer is D.

Find the Accumulated Amount a If the Principal P Is