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What is the balance after three years on a CD with an initial investment of $1,400.00 and a 3% interest rate? A. $1,484.00 B. $1,406.00 C. $1,529.82 D. $4,200.00
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8 votes
8 votes
What is the balance after three

years on a CD with an initial
investment of $1,400.00 and a
3% interest rate?
A. $1,484.00
B. $1,406.00
C. $1,529.82
D. $4,200.00

User Eran Betzalel
by
2.5k points

1 Answer

19 votes
19 votes

Answer:

Option C ($1529.82) is the correct alternative.

Step-by-step explanation:

Given values:

Initial investment,

= $1400

Interest rate,

i = 3%

The future value will be:

=
Initial \ investment(1+i)^3

=
1400(1+3 \ percent)^3

=
1400(1.03)^3

=
1400* 1.092727

=
1529.82 ($)

User Patrick RoDee
by
3.1k points
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