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slamgirl [31]
3 years ago
9

Your broker is offering 1.2 percent compounded daily on its money market account. If you deposit $7,500 today, how much will you

have in your account 15 years from now
Business
1 answer:
Vikentia [17]3 years ago
8 0

Answer:

$8,985.17

Explanation:

We assume that there are 365 days in a year and that 1.2% interest rate is the annual rate.

N = 15 years x 365 days/year = 5475

r = 1.2% / 365 = 0.0033%

PV = $7,500

FV = ? We have to calculate the Future value

FV = PV (1 +  r)^{N}

FV = 7500 (1+0.000033)^{5475} = $8,985.17

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