You believe in the power of compounding and decide to save $1 per day by avoiding the purchase of a soda. You deposit the $1 at the end of each day in a bank account that pays 8% interest compounded daily. You are going to take a trip in 20 years with the money you have accumulated. How much money will you have in 20 years, assuming 365 days per year? a. $7,500 b. $12,438 c. $18,032 d. $22,456

Answer:option (c) $18,032Step-by-step explanation:Data provided in the question;Amount deposited at the end of each day = $1Interest paid = 8% compounded daily = 0.08Daily interest rate = [tex]\frac{\textup{0.08}}{\textup{365}}[/tex]  =  0.000219Duration = 20 years = 20 × 365 days = 7300 daysNow,the Future value is given as:Future value = Part payment × [tex]\frac{(1+r)^n-1}{r}[/tex]here, r is the interest raten is the durationthus,Future value = $1 × [tex]\frac{(1+0.0002192)^{7300}-1}{0.0002192}[/tex]orFuture value = $18033.56 ≈ $18,032Hence, the correct answer is option (c) $18,032