Jada deposited an amount of money in a bank 3 years ago If t

Jada deposited an amount of money in a bank 3 years ago. If the bank had been paying interest at the rate of 6%/yearcompounded daily (assume a 365-day year) and she has $16,000 on deposit today, what was her initial deposit? (Round your answer to the nearest cent.)

Find the interest rate needed for an investment of $9,000 to grow to an amount of $12,000 in 6 years if interest is compounded daily. (Round your answer to the nearest hundredth of a percentage point.)

How long will it take for an investment of $5,000 to grow to $6,200 if the investment earns interest at the rate of8%/year compounded daily? (Round your answer to one decimal place.)

Solution

1) Formula for compouding daily:

Amount = Principal( 1+ rate/365)^t*365

16000 = P ( 1+ 6/100*365 )^3*365

16000 = P*1.197

Principal = $ 13366.75 intial deposit

2)

Formula for compouding daily:

Amount = Principal( 1+ rate/365)^t*365

12000 = 9000( 1 + r/365 )^(6*365)

1.33 = ( 1 + r/365 )^(6*365)

ln(1.33) = 2190*ln(1 + r/365)

0.285 = 1+ r/365

1.00013 = 1 + r/365

r =0.00013*365 =0.04745

r = 4.75 %