Question

Anne Deno invests $6,500 in a 1-year certificate of deposit that earns interest at an annual rate of 3.25

percent compounded daily. The amount per $1.00 is 1.033032. How much interest will she earn at the end
one year?

Answer 1

To calculate the interest earned on a certificate of deposit (CD), we use the formula: Interest = Principal x Rate x Time. In this case, Anne Deno invested $6,500 at an annual rate of 3.25% compounded daily for 1 year, so she will earn $211.25 in interest at the end of one year.

Step-by-step explanation:

To calculate the interest earned on a certificate of deposit (CD), we can use the formula:

Interest = Principal x Rate x Time

In this case, Anne Deno invested $6,500 at an annual rate of 3.25% compounded daily for 1 year. Therefore, the interest she will earn at the end of one year is:

Interest = $6,500 x 0.0325 x 1

Calculating this, we find that Anne will earn $211.25 in interest at the end of one year.