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Toán Lớp 12: Suppose you have $5,000 and plan to purchase a 2-year certificate of deposit that pays 8% interest, compounded monthly. How much will y

Home/ Toán Lớp 12: Suppose you have $5,000 and plan to purchase a 2-year certificate of deposit that pays 8% interest, compounded monthly. How much will y

Toán Lớp 12: Suppose you have $5,000 and plan to purchase a 2-year certificate of deposit that pays 8% interest, compounded monthly. How much will y

Mỹ Thuận Tháng Mười Hai 9, 2022 Toán học 1 Comment 0 views

Toán Lớp 12: Suppose you have $5,000 and plan to purchase a 2-year certificate of deposit that pays 8% interest,
compounded monthly. How much will you have when the CD matures?

Comments ( 1 )

truonganhthi
9 Tháng Mười Hai, 2022 at 4:59 sáng

Reply

Giải đáp: ≈$5864

Bước giải:

To calculate the monthly compounded interest, use the formula:

I=P(1+r/12)^{12n}

Where

I is the final value.

P is principal.

r is the interest rate.

n is time (usually in years.)

Replace P with the value $5000, r with 8%, and n with 2 in the formula, therefore:

I=$5000(1+8%/12)^{12*2}

=$5000(151/150)^24

≈$5000*1.1728

≈$5864

Hence, I will have about $5864 when the CD matures.

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