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18 October, 20:12

Fowler credit bank is offering 6.9 percent compounded daily on its savings accounts. you deposit $5,300 today. how much will you have in the account in 4 years?

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  1. 18 October, 20:32
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    Principal, P = $5,300

    Rate, r = 6.9% = 0.069

    Compounding interval, n = 365

    Time, t = 4 years

    Note that n*t = 365*4 = 1460.

    The value after 4 years is

    A = 5300 * (1 + 0.069/365) ¹⁴⁶⁰ = 5300*1.3178 = 6984.41

    Answer: $6,984.41
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