Question

Suppose you deposited $30,000 in a bank account that pays 5.25% with daily compounding based on a 360-day year. How much would be in the account after 8 months, assuming each month has 30 days? Select the correct answer. a. $31,080.11 b. $31,074.31 c. $31,056.91 d. $31,068.51 e. $31,062.71

Answer 1

maturity value = 31068.51

so correct option is d. $31,068.51

Step-by-step explanation:

given data

amount = $30000

rate = 5.25 % =
`(0.0525)/(360)`

time = 8 month = 8 × 30 = 240 days

solution

we know here common to assume 360 days in a year

when working with simple interest

The maturity value is

maturity value =
`amount( 1+ rate )^t` .............1

put here value

maturity value =
`30000 ( 1+ (0.0525)/(360) )^240`

maturity value = 31068.51

so correct option is d. $31,068.51