Suppose you deposited $5,000 in a bank account that pays 5.25% with daily compounding based on a 360-day year. how much would be in the account after 8 months, assuming each month has 30 days?

question 47 options:

$5,178.09

$5,436.99

$5,708.84

$5,994.28

$6,294.00

$5,178.09

Explanation:

Data provided in the question:

Principle amount, P = $5,000

Interest rate, r = 5.25%

Duration, t = 8 months = years = 0.67 years

Now,

A =

Here,

A = total amount

P = principal or amount of money deposited,

n = number of times compounded per year  i.e 365 for daily

t = time in years

Thus,

A = $5,000 ×

=  $5,000 ×

= $5,000 × 1.035618

= $5,178.09

Hence,

the correct answer is option $5,178.09

this conflict is person vs. society

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