Answer:
FV= $18,213.18
Step-by-step explanation:
First, we need to calculate the monthly real interest rate:
Daily interest rate= 0.08/360= 0.00022
Monthly interest rate= (1.00022^30) - 1
Monthly interest rate= 0.0066
Assuming a year of 360 days, and months of 30 days.
Now, we can determine the future value of the investment:
Monthly deposit= $100
Number of periods= 10*12= 120
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV= {100*[(1.0066^120) - 1]} / 0.0066
FV= $18,213.18
