Question

Suppose you found a CD that pays 4.9% interest compounded monthly for 3 years.

If you deposit $11,000 now, how much will you have in the account in 3 years? (Round to the nearest cent.)

$

What was the interest earned? (Round to the nearest cent.)

$

Now suppose that you would like to have $20,000 in the account in 3 years. How much would you need to deposit now? (Round to the nearest cent.)

Answer 1

Answer: 11,000 now = 12,697.52$, The interest earned was 1,697.52$

20,000 now = 23086.41$ the interest earned was 3,086$.

Step-by-step explanation: 11,000(1.049)^3 solve the equation and voila.

Q.#2 20,000(1.049)^3