Question

Jenna inherits 1,300 from her grandparents. How much will Jenna have in all if she invests in a cd for 2 1/2 years at a rate of 5.2

Answer 1

Answer: Amount that Jenna have in all is $1438.71.

Explanation:

Since we have given that

Amount Jenna inherits from her grandparents(P)= $1300

Rate of interest she is going to receive on investing in a cd is given by

(r)=5.2%

Number of years (n) is given by

`2(1)/(2)\\\\=(5)/(2)`

As we know the formula for "Compound interest ":

`A=P(1+(r)/(100))^n\\\\A=1300(1+0.052)^2\\\\A=1300(1.052)^2\\\\A=\$1438.71`

Hence, Amount that Jenna have in all is $1438.71.