Answer to Question #91120 in Financial Math for Ron

Question

For the compound interest loan whose terms are given below, find the future value, or the amount due at the end of the specified time.

Principal: $4000
Interest rate: 5.4%
Compounding: Daily
Time: 3.5 years


Future value: $

Answer 1

The future value, or the amount due at the end of the specified time is:

$FV = 4000×(1 + 0.054/365)^(3.5×365) = $4832.1.$