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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 deposit this money in a bank CD that pays daily interest at 3.75 percent. What will be the value of the investment at the end of the year

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Based on the amount of the investment by Normandy Textiles, the value at the end of the year will be $1,038,210.

What is the investment value at year end?

First convert the interest to a daily rate:

= 3.75% / 365

= 3.75/360%

The value is:

= Amount x (1 + rate) ^ number of periods

= 1,000,000 x ( 1 + 3.75/360%) ³⁶⁵

= 1,038,209.99

= $1,038,210

Find out more on future value at https://brainly.com/question/5025949.

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