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GREYUIT [131]
3 years ago
11

Calculating Future Values [LO1] Gold Door Credit Bank is offering 9.3 percent compounded daily on its savings accounts. If you d

eposit $4,500 today, how much will you have in account in 5 years ?
Business
1 answer:
lara31 [8.8K]3 years ago
7 0

Answer:

$7,163.64

Explanation:

The computation is shown below:

Data given in the question

Deposit amount = $4,500

Rate of interest = 9.3% ÷ 365 = 0.0254%

Time period = 5 years  × 365 = 1,825

So, the future value is

Future value = Present value × (1 + interest rate)^number of years  

= $4,500 × (1 + 0.0002547945 )^1,825

= $4,500 × 1.5919198972

= $7,163.64

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