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You deposited $5,000 at 5.25% daily compounding (assume that there are 360 days in the year). After 8 months, how much would be in this account

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5 votes

Answer:

The amount after eight month is $5,178.09

Step-by-step explanation:

The computation of the amount after eight month is shown below:

Future value = Present value × (1 + rate of interest)^number of years

= $5,000 × (1 + 5.25% ÷ 360)^8 × 30

= $5,000 × (1 + 0.00014583333333)^240

= $5,178.09

Hence, the amount after eight month is $5,178.09

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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