Question

For the compound interest loan whose terms are given below, find the future value, or the amount due at the end of the specified time.

Principal: $4000
Interest rate: 5.4%
Compounding: Daily
Time: 3.5 years


Future value: $

Answer 1

The future value, or the amount due at the end of the specified time is:

FV = 4000×(1 + 0.054/365)^(3.5×365) = $4832.1.