Question

Pre calc exam 4 pt.1 exam 4 need help to pass class

Answer 1

The correct answer is 81.44.

To calculate the interest earned on the Certificate of Deposit (CD), we can use the compound interest formula:

`\[A = P \left(1 + (r)/(n)\right)^(nt)\]`

Where:

-
`\(A\)` is the future value of the investment/loan, including interest.

-
`\(P\)` is the principal amount (initial deposit).

-
`\(r\)` is the annual interest rate (as a decimal).

-
`\(n\)` is the number of times that interest is compounded per unit \(t\).

-
`\(t\)` is the time the money is invested or borrowed for in years.

In this case:

`- \(P = $600\),`

`- \(r = 4.25\% = 0.0425\) (as a decimal),`

`- \(n = 12\)` (compounded monthly),

`- \(t = 3\) years.`

`\[A = 600 \left(1 + (0.0425)/(12)\right)^(12 * 3)\]`

Calculating this will give us the future value of the investment after 3 years. To find the interest earned, subtract the initial deposit
`\(P\)` from the future value
`\(A\)`:

`\[Interest = A - P\]`

Performing the calculations, the interest earned is approximately $81.44. Therefore, the correct answer is 81.44.