If $1500 is invested at an interest rate of 2.5% per year, compounded daily, find the value of the investment after the given number of years. (Round your answers to the nearest cent.)

Question

(a) 3 years

(b) 4 years

(c) 12 years

Answer 1

a) FV = PV(1+ r/n)^nt

1500(1+.025/365)^365(3)= $1,616.82

b) 1500(1+.025/365)^365(4)

c) 1500(1 +.025/365)^365(12)