Answer:
The total amount after four-month is 24982.08 dollars.
Explanation:
The amount to deposit in savings account = $24000
Nominal interest rate = 12%
Daily rate = 12 /365= .03288%
The interest is compounded daily and a number of months = 4 months.
We have to calculate the total amount after the four months. The calculation is given below:
Number of days in 4 months = 4 × 365/12 = 121.66 (rounded to 122)
Amount in account = Amount deposited × (1+i)^n
= 24000 × (1+.0003288)^122
= 24000 × (1.0003288)^122
= 24000 × 1.04092
= 24982.08 dollars
