Ask Question
19 September, 06:55

Suppose you decide to deposit $11,000 in a savings account that pays a nominal rate of 6%, but interest is compounded daily. Based on a 365-day year, how much would you have in the account after 12 months? (Hint: To calculate the number of days, divide the number of months by 12 and multiply by 365.)

+1
Answers (1)
  1. 19 September, 07:21
    0
    I will have $11,680 after 12 months.

    Explanation:

    Future value is the sum of principal amount and compounded interest amount invested on a specific rate for a specific period of time.

    Use following formula to calculate the future value of invested amount

    FV = PV x (1 + r) ^n

    FV = Future Value =

    PV = Present Value =

    r = rate of interest = 6% yearly

    n = number of days = 365 days

    FV = $11,000 x (1 + 6%/365) ^365

    FV = $11,680.14
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose you decide to deposit $11,000 in a savings account that pays a nominal rate of 6%, but interest is compounded daily. Based on a ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers