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23 October, 15:45

Tom invests $200 into a bank account that yields 3.75 percent interest compounded daily. What will his exact account balance be after 2 years?

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  1. 23 October, 18:54
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    The formula is

    A=p (1+r/k) ^kt

    A future value?

    P present value 200

    R interest rate 0.0375

    K compounded daily 365

    T time 2 years

    A=200 * (1+0.0375:365) ^ (365*2)

    A=215.58
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