north island federal credit union pay 4% annual interest, compounded daily on time savings deposits. find the value after 1 year of 750 deposited in this account

To calculate the value of the deposit after one year with compound interest, we can use the formula:

A = P(1 + r/n)^(nt)

Where:
A = The final amount (including interest)
P = The principal amount (initial deposit)
r = Annual interest rate (as a decimal)
n = Number of times interest is compounded per year
t = Number of years

In this case:
P = $750
r = 4% = 0.04 (as a decimal)
n = 365 (compounded daily)
t = 1 year

Let's plug these values into the formula:

A = 750(1 + 0.04/365)^(365*1)

Calculating further:

A = 750(1 + 0.00010958904)^(365)

A = 750(1.00010958904)^(365)

A ≈ 750 * 1.04074072269

A ≈ $780.55

So, the value of the deposit after one year will be approximately $780.55.

To find the value of $750 deposited in an account that pays 4% annual interest, compounded daily, after 1 year, you can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = the final amount
P = the principal amount (initial deposit)
r = annual interest rate (as a decimal)
n = number of times interest is compounded per year
t = time in years

In this case, the principal (P) is $750, the annual interest rate (r) is 4% (or 0.04 as a decimal), the interest is compounded daily (n = 365), and the time period (t) is 1 year.

Plugging these values into the formula:

A = $750(1 + 0.04/365)^(365*1)

Now, let's calculate it step by step:

Step 1: Divide 0.04 by 365: 0.04/365 = 0.00010958904
Step 2: Add 1 to the result: 1 + 0.00010958904 = 1.00010958904
Step 3: Multiply the result by 365: 1.00010958904^365 ≈ 1.04060409094
Step 4: Multiply the principal by the result: $750 * 1.04060409094 ≈ $780.45

Therefore, after 1 year, the value of $750 deposited in the North Island Federal Credit Union account, which pays 4% annual interest, compounded daily, would be approximately $780.45.