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Travis Brown deposited $17,500 into Browning Bank, which pays 6% compounded daily. Calculate how much Travis...

Travis Brown deposited $17,500 into Browning Bank, which pays 6% compounded daily. Calculate how much Travis will have in his account at the end of seven years.

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Answer #1

We use the formula:
A=P(1+r/365)^365n
where
A=future value
P=present value
r=rate of interest
n=time period.

A=$17500*(1+0.06/365)^(365*7)

=$17500*1.521909023

which is equal to

=$26633.41(Approx).

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