Answer:
Option a) $ 82,531.59
Step-by-step explanation:
The Formula for Future value =
Present value (1 + r/n)^nt
From the question
Present value = $51,123.21
Interest rate (r) = 2 3/8 % = 2.375% = 0.02375
n = compounding frequency = compounded daily = using the traditional bankers rule of 30 days = 30 × 12 months = 360
T = Time duration in years = 20 years and 2 months = 20.1667
Future value = $ 51,123.21(1 + 0.02375/260)^20.1667 × 360
Future value = $ 82,531.59
