Question

Find the future value, using the future value formula and a calculator. (Round your answer to the nearest cent.)$39,500 at 6.3% compounded daily for 3 years

Answer 1

To determine the future value of the computation below:

`FV=PV(1+(r)/(n))^(nt)`

FV=future value

PV=present value = $39500

r=annual interest rate = 6.3% = 0.063%

n=number of periods interest held daily = 365

t = number of years = 3

`\begin{gathered} FV=39500(1+(0.063)/(365))^(3*365) \\ FV=39500(1.20802) \\ FV=\text{\$}47716.83936 \end{gathered}`

Hence the future value = $47,716.84 (nearest cent)