Answer:
The correct option is (A) $304.47.
Step-by-step explanation:
The formula to compute the future value (FV) of an amount (A), compounded daily at an interest rate of r%, for a period of n years is:
[tex]FV=A\times [1+\frac{r\%}{365}]^{n\times 365}[/tex]
The information provided is:
A = $300
r% = 1.48%
n = 1 year
Compute the future value as follows:
[tex]FV=A\times [1+\frac{r\%}{365}]^{n\times 365}[/tex]
[tex]=300\times [1+\frac{0.0148}{365}]^{365}\\\\=300\times (1.00004055)^{365}\\\\=300\times 1.014911\\\\=304.4733\\\\\approx \$304.47[/tex]
Thus, the balance after 1 year is $304.47.
The correct option is (A).
