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Calculate the future value of $51,123.21

Calculate the future value of $51,123.21-example-1

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Answer:

Option a) $ 82,531.59

Explanation:

The Formula for Future value =

Present value (1 + r/n)^nt

From the question

Present value = $51,123.21

Interest rate (r) = 2 3/8 % = 2.375% = 0.02375

n = compounding frequency = compounded daily = using the traditional bankers rule of 30 days = 30 × 12 months = 360

T = Time duration in years = 20 years and 2 months = 20.1667

Future value = $ 51,123.21(1 + 0.02375/260)^20.1667 × 360

Future value = $ 82,531.59

User Duncan Benoit
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