Hans received a $1500 bonus. He decided to invest it
in a 5-year certificate of deposit (CD) with an annual
interest rate of 1.53% compounded daily. Answer the
questions below. Do not round any intermediate computations, and
round your final answers to the nearest cent. If necessary, refer
to the list of financial formulas. Assume there
are 365 days in each year.
(a)
Assuming no withdrawals are made,
how much money is in Hans' account after 5 years?
$
(b)
How much interest is earned on
Hans' investment after 5 years?
$