Streamsong Credit Bank is offering 5.4 percent compounded daily on its savings accounts. Assume that you deposit $5,100 today. a. How much will you have in the account in 6 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use 365 days in a year.) b. How much will you have in the account in 12 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use 365 days in a year.) c. How much will you have in the account in 24 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use 365 days in a year.)

Respuesta :

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