Question

Kim Lee deposits $1,200 in a certificate of deposit for 5 years.

Find the compound amount if the interest rate is 4% compounded daily.

Round to the nearest cent.

Answer 1

PRT=I.
1,200(5)(.04)=I.
6,000(.04)=I.
240=I :)

Answer 2

A=1,200×(1+0.04÷360)^(360×5)
A=1,465.67