Question

Bucher Credit Bank is offering 5.7 percent compounded daily on its savings accounts. Assume that you deposit $5,400 today.

How much will you have in the account in 5 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use 365 days in a year.)

Future value            $

How much will you have in the account in 10 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use 365 days in a year.)

Future value            $

How much will you have in the account in 20 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use 365 days in a year.)

Future value            $

is there any other way that I can solve this using Texas ba ii plus ??

Answer 1

Bucher Credit Bank is offering 5.7 percent compounded daily on its savings accounts. Assume that you deposit $5,400 today.

1. How much will you have in the account in 5 years?

FV = PV * (1+r) ^n

Where Future Value FV =?

Present value PV =$5,400

Days in a year = 365 days

Annual percentage interest rate r = 5.7% per annum or 5.7%/365 per day = 0.0156% per day

Time period n =5 years * 365 days = 1,825 days

Therefore,

FV = $5,400 * (1+0.0156%) ^1825

= $7,180.56

Therefore Future value is $7,180.56

2. How much will you have in the account in 10 years?

= PV * (1+r) ^n

Where Future Value FV =?

Present value PV =$5,400

Days in a year = 365 days

Annual percentage interest rate r = 5.7% per annum or 5.7%/365 per day = 0.0156% per day

Time period n =10 years * 365 days = 3,650 days

Therefore,

FV = $5,400 * (1+0.0156%) ^3650

= $9,548.22

Therefore Future value is $9,548.22

3. How much will you have in the account in 20 years?

= PV * (1+r) ^n

Where Future Value FV =?

Present value PV =$5,400

Days in a year = 365 days

Annual percentage interest rate r = 5.7% per annum or 5.7%/365 per day = 0.0156% per day

Time period n = 20 years * 365 days = 7,300 days

Therefore,

FV = $5,400 * (1+0.0156%) ^7300

= $16,883.05

Therefore Future value is $16,883.05