Answer:
The correct answer is $45,720.
Explanation:
According to the scenario, the given data are as follows:
Payment (pmt) = $16,000
Rate of interest (R)= 3.5% = .035
Time (t) = 30 years
Time (compounded daily ) (n) = 365days
(nt) = 365 ×30 = 10950 days
So, we can calculate future value after 30 years by using following formula:
FV = pmt × [tex](1 + r/n )^{nt}[/tex]
= $16,000 × [tex](1 + .035/365 )^{10950}[/tex]
= $16,000 × 2.8575
= $45,720
Hence, the future value after 30 years will be $45,720.
