Bucher Credit Bank is offering 5.9 percent compounded daily on its savings accou

ID: 2617834 • Letter: B

Question

Bucher Credit Bank is offering 5.9 percent compounded daily on its savings accounts. Assume that you deposit $5,600 today.

How much will you have in the account in 4 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use 365 days in a year.)

Future value            $

How much will you have in the account in 8 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use 365 days in a year.)

Future value            $

How much will you have in the account in 16 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use 365 days in a year.)

Future value            $

Explanation / Answer

Using financial calculator BA II Plus - Input details:

4 years

8 years

16 years

I/Y = Rate or yield = 5.9/365

0.016164

PMT = Payment =

$0.00

N = Total number of period = Period x 365

1460

2920

5840

PV = Present Value =

-$5,600.00

CPT > FV = Future Value =

$7,090.44

$8,977.56

$14,392.26