Question

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?

Answer 1

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