Xavier deposits $6 daily into an interest bearing account to save for renovations. the account earns 4.57% which compounds annually. what is the present value of the investment if xavier renovates in five years?

To solve this, we are going to use the present value formula: 
where
is the present value 
is the periodic payment
is the number of times the interest is compounded per year  is the number of payments per year  is the number of years 
We know for our problem that Xavier deposits $6 daily into an interest bearing account, so  and . To convert the interest rate to decimal form, we are going to divide the rate by 100%

Since the interest is compounded annually, it is compounded 1 time per year; therefore, . We also know that Xavier renovates in five years, so 
Lets replace the values in our formula:




We can conclude that the present value of Xavier's investment is $131.29