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Kensley deposits $18,000 in a 2-year CD account that yields 4.8% interest, compounded weekly. What is her ending balance at the end of the 2 years?

A) $18,000

B) $19,000

C) $19,705.21

D) $20,000

User Nefarious
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1 Answer

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Final answer:

To find Kensley's ending balance, we can use the formula for compound interest. Kensley's ending balance at the end of 2 years is approximately $19,705.21.

Step-by-step explanation:

To find Kensley's ending balance at the end of 2 years, we can use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the ending balance, P is the principal (initial deposit), r is the interest rate (in decimal form), n is the number of times the interest is compounded per year, and t is the number of years.

In this case, Kensley deposited $18,000 with an interest rate of 4.8% (or 0.048), compounded weekly. The number of times the interest is compounded per year is 52, since there are 52 weeks in a year.

Using these values in the formula, we get:

A = 18000(1 + 0.048/52)^(52*2)

A = 18000(1 + 0.000923)^104

A = 18000(1.000923)^104

A ≈ 19705.21

Therefore, Kensley's ending balance at the end of the 2 years is approximately $19,705.21.

User Jarek Kulikowski
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