Question

A youth sports league held various fundraisers . They received $ 480 from a car wash , $ 217 from a bake sale , and $ 362 from a used equipment sale . The league decides to invest this money in a 4 year CD that pays 3.2 % interest compounded daily How much will the league receive from the CD in 4 years ?

Answer 1

$1059.56 from the CD in 4 years.

Explanation:

To calculate how much the youth sports league will receive from the CD in 4 years, we can use the formula:

A = P(1 + r/n)^(nt)

Where:

- A is the amount of money the league will receive after four years

- P is the initial amount invested (the total amount raised from the fundraisers)

- r is the annual interest rate (3.2%)

- n is the number of times the interest is compounded per year (365, since it is compounded daily)

- t is the number of years (4)

Plugging in the values, we get:

A = 1059.56

Therefore, the youth sports league will receive $1059.56 from the CD in 4 years.