Question

Bucher Credit Bank is offering 5.9 percent compounded daily on its savings accounts. Assume that you deposit $5,600 today.

How much will you have in the account in 4 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 8 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 16 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

Using financial calculator BA II Plus - Input details:	4 years	8 years	16 years
I/Y = Rate or yield = 5.9/365	0.016164	0.016164	0.016164
PMT = Payment =	$0.00	$0.00	$0.00
N = Total number of period = Period x 365	1460	2920	5840
PV = Present Value =	-$5,600.00	-$5,600.00	-$5,600.00
CPT > FV = Future Value =	$7,090.44	$8,977.56	$14,392.26