Question

Danielle has a CD at crossland bank. she invest $22,350 for four years at 4.55% interest. compounded monthly. What is her ending balance? How much interest did she make?

Answer 1

$22,350 x 4.55% = $1,016.925 (interest per year)

$1,016.925 x 4 = $4,067.70 (amount of interest earned over 4 years)

$22,350 + $4,067.7 = $26,417.70 (ending balance)

Answer 2

Answer: Her ending balance is $26,703.837 and her interest is $4,353.837

Explanation:

First year,

p =22350 R = 4.55 T = 1

Interest = PRT/100

= 22350 × 4.55 × 1 / 100

=$1016.925

P = $22350 + $1016.925 = $23366.925

For the 2nd year,

I = $23366.925 × 4.55 × 1 / 100

=$1063.195

p= $23366.925 + $1063.195 = $24,430.12

For the 3rd year,

I = $24,430.12 × 4.55 × 1 / 100

= $1111.57

p = $24,430.12 + $1111.57 = $25,541.68

For the 4th year;

I = $25541.68 × 4.55 × 1 / 100

= $1,162.147

P = $ 25541.69 + $1,162.147 = $26,703.837

Therefore th ending balance is $26,703.837

Her compound interest is , $26,703.837 - $22350 =$4,353.837