Mr. Nolan has a bank account that compounds interest

morning of December 7, the principal is $2,6

ount that compounds interest daily at a rate of 3.7%. On the

ecember 7, the principal is $2,644.08. That day he withdraws $550 to pay for a

snow blower. Later that day he receives

I. Later that day he receives a $934 paycheck from his employer, and he deposits

that in the bank. On December 8, he withdraws

ank, On December 8, he withdraws $300 to go holiday shopping. What is his

balance at the end of the day on December 8?

Answer: At the end of the day on December 8, he has a total balance of $2841.02

Step-by-step explanation:

The rate at which the compound interest adds up is a 3.7%.

His principal is $2644.08, on the 7th of December, he withdraws $550. Thus, his balance is = $2644.08 - $550 = $2094.08.

He later deposits $934, after being paid by his employer.

That is $2094.08 + $934 = $3028.08

Which is his balance at the end of the day on December 7.

Remember that the rate is daily, at a 3.7%.

A 3.7% of the balance of December 7, $3028.08 is $112.039.

In total, interest + amount = real balance,

$112.039+$3028.08 = $3140.119

He later withdraws $300 for holiday shopping = $3140.119 - 300 = $2840.119

But 1 dollar = 100 cents and vice versa.

Therefore, $2840.119 = $2841.019

In two decimal places, that is approximately $2841.02

Therefore, Mr Nolan's balance at the end of December 8 is $2841.02.