Fowler Credit Bank is offering 6.2 percent compounded daily on its savings accou

Question

Fowler Credit Bank is offering 6.2 percent compounded daily on its savings accounts. You deposit $4,600 today.

How much will you have in the account in 5 years? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

How much will you have in the account in 10 years? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

How much will you have in the account in 20 years? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Fowler Credit Bank is offering 6.2 percent compounded daily on its savings accounts. You deposit $4,600 today.

How much will you have in the account in 5 years? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Explanation / Answer

If interest is compounded daily, the future value (Pn) is
1. Pn = $4600(1 + .062/365)5×365

= $6271.59

2.

Pn = $4600(1 + .062/365)10×365

= $8550.62

3.

Pn = $4600(1 + .062/365)20×365

=$15894.15

=

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