Given:
Initial investment, P = $1,200.00.
Interest rate, r =2.6 %.
The period of time, t =2 years.
Required:
We need to find the balance on a CD.
Step-by-step explanation:
A is the total that your CD will be worth at the end of the term.
Consider the formula to find CD.
Substitute P = 1200.00 and r = 2.6 %=0.026, and n=1 in the formula.
Final answer:
The balance after two years on a CD is $ 1,263.21.