Question

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Egg Roll House deposited $14,710 in a savings account on April 2 and then deposited an additional $5,100 in the account on June 2.

Find the balance on July 1 assuming an interest rate of 3.5% compounded daily.

$19,865.16

$19,910.49

$19,981.69

$19,951.69

Answer 1

The effectively daily interest is: 1+(0.035/365) = 1.00009589
From April 2 to July 1, there are 90 days. From June 2 to July 1, there are 29 days.
Therefore the future value is:
14710(1.00009589)^90 + 5100(1.00009589)^29 = $19,951.69. This is the last of the 4 choices.