Answer:
D
Step-by-step explanation:
If we look at the formula for compound growth and learn what each variable represents, we can solve this problem very easily.
The formula is:
Compound Growth >>
Where
F is the Future Amount (accumulated amount after certain years)
P is the Initial Balance (principal amount)
r is the rate of interest (given in decimal)
n is the number of compounding (if 2, compounded semi annually, 4 means compounded quarterly, 52 means compounded weekly, and 365 means compounded daily)
t is the time in years
Now, the formula given is:
Comparing this with compound growth formula, we see that:
- 2500 is the initial balance
- 0.021 * 100 = 2.1% is the interest rate
- n = 365 means compounded daily
Now, looking at the answer choices, we see that D is the correct choice.
