In: Finance
If you borrow the entire fund of your renovation project now (e.g. $100,000) from a bank at an interest of 6% compounded daily and the project takes 2 years to complete, what would be the actual value of your renovation work at completion?
if you borrow $100000 from bank today at 6% interest compounded daily, the actual value after 2 year on completion is $112748.57
The actual Value of completion = P (1+ i/m)mn
The actual Value of completion = 100000 (1+0.06/365)365×2
The actual Value of completion = 100000 × 1.12748572709
The actual Value of completion = $112748.57
The actual Value of completion = $112748.57