Question

If $1.00 at 5.5% interest compounded daily has a value of $1.00513 after 34 days, how much interest would Bonnie’s account have earned on $4,000 after 34 days? (8 points)

Answer 1

$4020.52

Explanation:

The future value is the principal multiplied by the amount $1.00 is worth in the future.

$4,000 × 1.00513 = $4020.52