Solve the Application Problem

question 4

Multiple Choice

Solve the application problem. If no interest rate is given, assume interest compounded daily. Round to the nearest
cent.
-A local business deposited $460,000 in a 2-year time deposit earning 4% compounded daily. At maturity, what is the compound amount and interest earned?

• A)$508,375.14; $48,375.14
• B)$498,309.87; $38,309.87
• C)$561,837.59; $101,837.59
• D)$518,645.14; $58,645.14

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