Use 365 for the number of the days in a year. Calculate the future value (in dollars) of $1,150 deposited into an account earning an annual simple interest rate of 5% compounded daily after 3 years. Round your answer to the nearest cent 
Time value of money is a financial concept which is used to calculate the value of money in present or future terms. This concept states that the value of money is worth more today as compared to the same amount of money in the future because money has the capacity to grow over a period.
Simple interest is a type of interest that is calculated only on the principal amount of a loan or investment, without taking into account any interest earned on previously accumulated interest. In other words, the interest earned remains constant throughout the duration of the loan or investment, and is based solely on the original amount borrowed or invested (the principal), the interest rate, and the time period for which the money is borrowed or invested.
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