If you borrow the entire fund of your renovation project now (e.g. $100,000)

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?

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Expert Solution

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

Junaid answered 1 year ago

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