Multiple Compounding Periods (FV): Normandy Textiles Had a Cash Inflow

Multiple Choice

Multiple compounding periods (FV) : Normandy Textiles had a cash inflow of $1 million, which it needs for a long-term investment at the end of one year. It plans to invest this money in a bank term deposit that pays daily interest at 3.75 percent. What will be the value of the investment at the end of the year? (Round to the nearest dollar.)

A) $1,211,375
B) $1,000,103
C) $1,037,500
D) $1,038,210