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suppose you could make a single "lump sum" deposit of $3679, in an investment that provides an annual percentage rate(apr) of 4% compounded daily. determine the future value(fv) of the investment after 11 years.

Respuesta :

calculista

Answer:

[tex]\$5,698.30[/tex]  

Step-by-step explanation:

The compound interest formula is equal to  

[tex]A=P(1+\frac{r}{n})^{nt}[/tex]  

where  

A is the Final Investment Value  (future value)

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

[tex]t=11\ years\\ P=\$3,679\\ r=4\%=4/100=0.04\\n=365[/tex]  

substitute in the formula above

[tex]A=3,670(1+\frac{0.04}{365})^{365*11}[/tex]  

[tex]A=\$5,698.30[/tex]  

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