Question

Asked Oct 21, 2019

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Suppose that you deposit $10 at the end of each day into a savings account that pays 2% interest compounded daily. After a year, --------- is in the account?

Step 1

Accumulated value can be defined as the sum of investment and interest earned on investment over a specified time period.

It is given that,

Deposit amount on daily basis is $10.

Interest rate is 2% compounded daily. So, interest per day would be (2% ÷ 365).

Step 2

The formula to calculate accumulated value is given below:

Step 3

Substitute $10 for cash flow, (2% ÷ 365) for *i* a...

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