Question

A walk through on excel or a calculator would be greatly appreciated!

Bucher Credit Bank is offering 6 percent compounded daily on its savings accounts. Assume that you deposit $5,700 today. How much will you have in the account in 3 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use 365 days in a year.) Future value 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.) Future value $ 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.) Future value

Answer 1

b) c) Future value $6.824.04 Future value $8.169.74 Future value $11.709.58 Workings: Compound Interest formula A=P*(1 +r/n) nt Where, A = Accrued Amount (principal + interest) P= Initial principal balance r= Interest Rate n=number of times interest applied per time period t = number of time periods elapsed A=P*(1+r/n) nt = $5,700 *(1 + (6%/365) (365 * 3) = $6,824.04 A=P*(1+r/n nt = $5,700 *(1 + (6%/365) (3656) = $8,169.74 A=P*(1 +r/n) nt = $5.700 * (1 +(6%/365) (365 * 12) = $11,709.58