Question

Hello I seem to be stuck on this math problem and could use some help thank you so much

Answer 1

$1400 bonus

5 year CD investment

interest rate = 1.47%

compounded annually

Compound interest formula:

A = P (1 + r/n)^ nt

Where:

• A = future value

,

• P= principal = 1400

,

• r= interest rate = 1.47 % = 1.47 / 100 = 0.0147 (decimal form)

,

• n= compounding periods = 1

,

• t = years = 5

Replacing:

A = 1400 ( 1 + 0.0147)^5

A = $ 1,505.970059 = $ 1,505.97

Answers:

(a) = $ 1,505.97

(b) = 1,505.970059 - 1400 = $105.97