| Fowler Credit Bank is offering 5.8 percent compounded daily on its savings accounts. You deposit $4,200 today. |
| How much will you have in the account in 6 years? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| Future value | $ |
| How much will you have in the account in 11 years? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| Future value | $ |
| How much will you have in the account in 18 years? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| Future value | $ |
Answer:
We have been privided with the information as follow
Fowler Credit Bank is offering 5.8 percent compounded daily on its savings accounts. You deposit $4,200 today.
So
| PV | $4,200 |
| Rate per Year | 5.80% |
How much will you have in the account in 6 years?
FV = P (1+i /365)365n
FV= 4200 (1+0.058/365)365*6
Fv=5948.01
How much will you have in the account in 11 years
FV = P (1+i /365)365n
FV= 4200 (1+0.058/365)365*11
Fv=$7948.90
How much will you have in the account in 18 years
FV = P (1+i /365)365n
FV= 4200 (1+0.058/365)365*18*6
Fv=$11,929.35
