Answer:
b. $5178.09
Explanation:
Use future value (FV) formula;
FV = PV(1+r)^t
PV = Initial deposit =$5,000
r= daily interest rate in this case = 5.25%/360 = 0.014583% or 0.00014583 as a decimal.
t= total duration of investment(# of days in this case) = 8*30 =240 days
Next, plug in the numbers into the formula;
FV = 5,000 * (1+0.00014583)^240
FV =5,000* 1.035616238
FV = 5,178.0812
Therefore, the account will have 5,178.09 after 8 months.
