Answer:
Future value, A = $642
Step-by-step explanation:
Given the following data;
Principal = $500
Interest rate = 5% = 5/100 = 0.05
Time, t = 5 years
n = 365
To find the future value, we would use the compound interest formula;
Where;
A is the future value.
P is the principal or starting amount.
r is annual interest rate.
n is the number of times the interest is compounded in a year.
t is the number of years for the compound interest.
Substituting into the equation, we have;
Future value, A = $642
