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Robert deposits $4,300 into a 1-year CD at a rate of 2.3%, compounded daily. How much interest does she earn, to the nearest cent?

User Krystl
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1 Answer

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Here,

P = 4300

r = 2.3%=0.023

t = 1 year

n= 365 (as compounded daily for one year)

Therefore, we have


\begin{gathered} A=P(1+(r)/(n))^(nt) \\ =4300*(1+(0.023)/(365))^(365) \\ =4400 \end{gathered}

Therefore the interest is, 4400-4300=1000.

User Asantaballa
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