Monique borrows $5000 at 5.5% interest compounded daily for 29 days. How much will she owe at the end of 29 days?

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

A = P (1+r/n) ^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount borrowed

From the information given,

P = 5000

r = 9

5.5% = 5.5/100 = 0.055

Assuming they are 365 days in a year

n = 365 because it was compounded 52 times in a year.

t = 29/365 = 0.0794

Therefore,

A = 5000 (1 + 0.055/365) ^365 * 0.0794

A = 5000 (1 + 0.00015) ^29

A = 5000 (1.00015) ^29

A = $5022