Question

tak murakami has a savings account at city saving bank. the account earns 5.5% interest compounded daily. on febuary 2,the ammount in his account $580. how much will be in the acoount in 40 days

Answer 1

$583.506

Explanation:

Find Future value;

FV= PV*(1+r)^t whereby;

PV= present amount

r= daily rate in this case (5.5% / 365 )= 0.015068% or 0.00015068 as a decimal

t= total duration =40 days

FV= 580*(1+0.00015068)⁴⁰

FV= 580*1.00604514

FV= $583.506