Spartan credit bank is offering 6.8 percent compounded daily on its savings accounts. you deposit $5200 today. How much will you have in the account after 18 years?

To calculate how much you'll have in the account after 18 years with daily compounding interest, we use the **compound interest formula**:

\[
A = P \left(1 + \frac{r}{n}\right)^{nt}
\]

Where:
- $A$ is the amount of money you'll have after interest.
- $P$ is the initial principal (your initial deposit).
- $r$ is the annual interest rate (as a decimal).
- $n$ is the number of times the interest is compounded per year.
- $t$ is the time in years.

In this case:
- $P = 5200$
- $r = 6.8\% = 0.068$
- $n = 365$ (since it's compounded daily)
- $t = 18$ years

Now, let's calculate $A$.After 18 years, you will have approximately **$17,681.95** in your Spartan Credit Bank account with a 6.8% interest rate compounded daily.

Would you like more details or have any questions?

Here are 5 related questions:
1. What is the difference between daily and annual compounding?
2. How much interest would you earn if the interest were compounded quarterly instead of daily?
3. What happens to the amount if the interest rate changes to 5%?
4. How would the amount change if you deposit additional funds annually?
5. How can you calculate the interest earned at any given time?

**Tip:** The more frequently interest is compounded, the higher the accumulated amount over time.

Spartan credit bank is offering 6.8 percent compounded daily on its savings accounts. You deposit $5200 today. How much will you have in the account after 18 years?

Discover how to calculate compound interest with a 6.8% daily compounding rate on a $5200 deposit over 18 years. Using the formula A = P(1 + r/n)^(nt), this example covers essential financial math concepts and shows how exponential growth affects savings.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation