Question

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Answer 1

Answer: $ 82,531.59.

Explanation:

Formula to calculate the accumulated amount compounded daily:

`A=P(1+(r)/(365))^(t)`

,where P=principal amount, t=time ( in days ), r =rate of interest.

Given: P= $51,123.21

r =
`2(3)/(8)\%=(19)/(8)\%=0.02375`

t= 20 years 2 months

`= 20(365)+(2)/(12)(365)\\\\= 7360.83` [1 year = 365 days, 1 year = 12 months]

Substitute all values in the formula, we get

`A=(51123.21)(1+(0.02375)/(365))^(7360.83)\\\\\approx82531.59`

hence, future value = $ 82,531.59.