Answer:
$1,725.39
Step-by-step explanation:
-Take 1 year =365 days.
#We calculate the effective interest rate for 7% compounded daily;
[tex]i_m=(1+i/m)^m-1\\\\=(1+0.07/365)^{365}-1\\\\=0.072501[/tex]
#We now use this rate to calculate the compounded amount after two years:
[tex]A=P(1+i_m)^n\\\\=1500(1.072501)^2\\\\=1725.39[/tex]
Hence, the balance after 2 years $1,725.39
