Answer:
$5,178.09
Explanation:
Data provided in the question:
Principle amount, P = $5,000
Interest rate, r = 5.25%
Duration, t = 8 months = [tex]\frac{8}{12}[/tex] years = 0.67 years
Now,
A = [tex]P \left( 1 + \frac{r}{n} \right)^{\Large{n \cdot t}}[/tex]
Here,
A = total amount
P = principal or amount of money deposited,
n = number of times compounded per year i.e 365 for daily
t = time in years
Thus,
A = $5,000 × [tex]\left( 1 + \frac{5.25%}{365} \right)^{\Large{365 \cdot 0.667}}[/tex]
= $5,000 × [tex]( 1.0001437 )^{243.45}[/tex]
= $5,000 × 1.035618
= $5,178.09
Hence,
the correct answer is option $5,178.09
