Please help with this question
1 answer:
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Answer:
option (c) $18,032
Step-by-step explanation:
Data provided in the question;
Amount deposited at the end of each day = $1
Interest paid = 8% compounded daily = 0.08
Daily interest rate = = 0.000219
Duration = 20 years = 20 × 365 days = 7300 days
Now,
the Future value is given as:
Future value = Part payment ×
here, r is the interest rate
n is the duration
thus,
Future value = $1 ×
or
Future value = $18033.56 ≈ $18,032
Hence, the correct answer is option (c) $18,032