Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / What is the future value at the end of year 18 of $10,000 deposited today into an account that pays interest of 4
What is the future value at the end of year 18 of $10,000 deposited today into an account that pays interest of 4.5% p.a., but with daily compounding (assume 365 days per year)?
Computation of Future Value:
Future Value = Present Value*(1+Rate/Number of Compounding Periods)^(Time*Number of Compounding Periods)
= $10,000*(1+4.5%/365)^(18*365)
= $10,000*2.2448
Future Value = $22,477.96
