Question

Calculate the future value of 76,010.00, earning interest at a rate of 21/5% that is compounded daily for 2 years

Answer 1

FV = $82,670

Explanation:

FV = PV [1 + (r / b)]ⁿᵇ

Where,

PV = $76,010

r = 21/5 % = 4.2% = 0.042

b = 360 days in a year

n = 2 years

FV = $76,010 [1 + (0.042 / 360)]² ˣ ³⁶⁰

FV = $76,010 [1 + 0.00012]⁷²⁰

FV = $76,010 [1.00012]⁷²⁰

FV = $76,010 [1.087624]

FV = $82,670