Answer:
Option A is the correct answer.
Explanation:
Initial amount deposited into the account is $10000. This means that the principal is
P = 10000
It was compounded daily. This means that it was compounded 365 times in a year. So
n = 365
The rate at which the principal was compounded is 2%. So
r = 2/100 = 0.02
It was compounded for 5 years. So
t = 5
The formula for compound interest is
A = P(1+r/n)^nt
A = total amount in the account at the end of t years. Therefore
A = 10000 (1+0.02/365)^365×5
A = 10000 (1.000055)^1825
A = $11052