Bucher Credit Bank is offering 6 percent compounded daily on its savings account

Question

Bucher Credit Bank is offering 6 percent compounded daily on its savings accounts. Assume that you deposit $5,700 today.

How much will you have in the account in 3 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Use 365 days in a year. Round your answer to 2 decimal places (e.g., 32.16).)

How much will you have in the account in 6 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Use 365 days in a year. Round your answer to 2 decimal places (e.g., 32.16).)

How much will you have in the account in 12 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Use 365 days in a year. Round your answer to 2 decimal places (e.g., 32.16).)

How much will you have in the account in 3 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Use 365 days in a year. Round your answer to 2 decimal places (e.g., 32.16).)

Explanation / Answer

1. Amount in 3 years = 5700*(1+6%/365)^(3*365) = $6824.04

2. Amount in 6 years = 5700*(1+6%/365)^(6*365) = $8169.74

3. Amount in 12 years = 5700*(1+6%/365)^(12*365) = $11,709.58

Hope this helped ! Let me know in case of any queries.

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.