Answer & Explanation:
a. How much will you have in the account in 6 years?
The formula for Compound Interest is;
= Amount deposited ( 1 + rate)^no of periods
Rate is a yearly rate so daily rate is;
= 5.4%/365
No. of periods;
= 365 * 6
= 2,190 days
= 5,100 * ( 1 + 5.4%/365)^2,190
= $7,051.33
b. How much will you have in the account in 12 years?
No. of periods = 365 * 12
= 4,380 days
= 5,100 * ( 1 + 5.4%/365)^4,380
= $9,749.27
c. How much will you have in the account in 24 years?
No. of periods = 365 * 24
= 8,760 days
= 5,100 * ( 1 + 5.4%/365)^8,760
= $18,636.92