## jcdavi34 Group Title Allie currently has an account balance of $2,265.96. She opened the account 13 years ago with a deposit of$1,227.43. If the interest compounds daily, what is the interest rate on the account? one year ago one year ago

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1. Hunus Group Title

The formula for compounded interest is $A=P(1+\frac{r}{n})^{nt}$ Where n is the number of times per year it is compounded So the equation you will need to use is $A=P(1+\frac{r}{365})^{365t}$

2. jcdavi34 Group Title

i got 1.9%

3. Hunus Group Title

I got something different. Will you show me your steps?

4. jcdavi34 Group Title

i got 4.7%

5. jcdavi34 Group Title

2265.96(1+r/365)365*12

6. jcdavi34 Group Title

...........

7. Hunus Group Title

Okay is it 12 or 13 years?

8. jcdavi34 Group Title

no

9. jcdavi34 Group Title

intrest rate

10. Hunus Group Title

no? In your question you put 13 in your step you put 12

11. Hunus Group Title

I know. But I need to know if t = 12 or t = 13

12. jcdavi34 Group Title

whats r

13. Hunus Group Title

$2265.96=1227.43(1+\frac{r}{365})^{365*13}$ $\frac{2265.96}{1227.43}=(1+\frac{r}{365})^{365*13}$ $\log(1.8461)=\log((1+\frac{r}{365})^{365*13})$ $\log(1.8461)=365*13*\log((1+\frac{r}{365}))$ $\frac{\log(1.8461)}{365*13}=1.000129=\log(1+\frac{r}{365})$ $10^{1.000129}=1+\frac{r}{365}$ $10^{1.000129}-1=0.000129=\frac{r}{365}$ $r=0000129*365=0.0471$