Question

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Answer 1

Answer: $ 82,531.59.

Step-by-step explanation:

Formula to calculate the accumulated amount compounded daily:

$A=P(1+\dfrac{r}{365})^{t}$

,where P=principal amount, t=time ( in days ), r =rate of interest.

Given: P= $51,123.21

r = $2\dfrac{3}{8}\%=\dfrac{19}{8}\%=0.02375$

t= 20 years 2 months

$= 20(365)+\dfrac{2}{12}(365)\\\\= 7360.83$  [1 year = 365 days, 1 year = 12 months]

Substitute all values in the formula, we get

$A=(51123.21)(1+\dfrac{0.02375}{365})^{7360.83}\\\\\approx82531.59$

hence, future value = $ 82,531.59.