Lance Jackson deposited $6,000 at Basil Bank at 8% interest compounded daily. What is Lance’s investment at the end of 4 years? (Use Table12.2.) (Do not round intermediate calculations. Round your answer to the nearest cent.)

Amari Flowers

Amari Flowers

Answered question

2021-02-27

Lance Jackson deposited $6,000 at Basil Bank at 8% interest compounded daily. What is Lance’s investment at the end of 4 years? (Use Table12.2.) (Do not round intermediate calculations. Round your answer to the nearest cent.)

Answer & Explanation

pivonie8

pivonie8

Skilled2021-02-28Added 91 answers

First you need to find the daily interest rate: Daily rate = .09365 = .000247
Second determine how many days in 4 years: Days = 4365 = 1460
Then you can set up the equation for amount of interest of 4 years. We will use the initial deposit and multiply by the daily interest rate over 1,460 days: Future value = 6000(1+.000247)1460
Final answer is 8,599.60

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