Math Problem Statement
Give the future value of compound interest formula where FV is the future value (in dollars), PV is the present value (in dollars), r is the annual interest rate as a decimal, n is the number of compounding periods per year, and t is the number of years. FV =
Incorrect: Your answer is incorrect. A deposit of $40,000 is placed in a scholarship fund that earns an annual interest rate of 4.75% compounded daily. The account earns interest for 2 years. Determine the following values. (Assume all years have 365 days.) PV = $ 40000
r = 0.0475
n = 365
t = 2
Find the value (in dollars) of the account after 2 years. (Round your answer to the nearest cent.) $
Solution
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Math Problem Analysis
Mathematical Concepts
Compound Interest
Exponential Growth
Formulas
FV = PV * (1 + r/n)^(nt)
Theorems
Compound Interest Theorem
Suitable Grade Level
Grades 10-12
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