Answer:
$1309.94
Step-by-step explanation:
The formula for the account value with interest compounded is ...
A = P(1 +r/n)^(nt)
where P is the principal invested at rate r compounded n times per year for t years.
Using P=1000, r=0.045, n=365, t=6, we find the account balance to be ...
A = 1000(1 +0.045/365)^(365·6) ≈ 1309.94
Maxine's balance will be $1309.94 at the end of 6 years.
_____
Additional comment
In most 6-year periods, there will be two leap years. In a leap year, n=366 instead of 365. The difference between the effective standard year rate and the effective leap year rate can be seen in the 8th decimal place of the multiplier. The numbers in this problem only have 6 significant figures, so there is no need to try to account for leap years.
A proper accounting for the leap years would add just under 0.002 cents to the balance for a $1000 investment. If the original deposit were $1,000,000, then a proper leap-year accounting would add 2¢ to the balance after 6 years.
