Question

Questions 9-11. Lori gets an offer from another bank that is also paying 6% on CD’s, but is compounding interest daily. How much will the $1500 CD be worth in:

5 years?

(round to the hundredths place)

Answer 1

5 yr = 1826 days ... 5 * 365 plus one leap year

value = 1500 [1 + (.06 / 365)]^1826