Question

suppose you could make a single "lump sum" deposit of $3679, in an investment that provides an annual percentage rate(apr) of 4% compounded daily. determine the future value(fv) of the investment after 11 years.

Answer 1

Answer:

$\ 5,698.30$  

Step-by-step explanation:

The compound interest formula is equal to  

$A=P(1+\frac{r}{n})^{nt}$  

where  

A is the Final Investment Value  (future value)

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

$t=11\ years\\ P=\ 3,679\\ r=4\%=4/100=0.04\\n=365$  

substitute in the formula above

$A=3,670(1+\frac{0.04}{365})^{365*11}$  

$A=\ 5,698.30$