Question

Laura invested $2000 in a three-year CD that pays 4% compounded annually.

What is the compound interest rate and amount that will be in the bank after
3 years?

Answer 1

• Formula: A=P(1+
  `(r)/(n)`
  `)^(n times t)`

Explanation:

P= 2000 R= 0.04 aka 4% N= 1 (annually is once a year) T=3 years

2000 (1 +
`(0.04)/(1)`
`)^(1 times 3)`

Put this is in the math website desmos: 2000 (1 +
`(0.04)/(1)`
`)^(1 times 3)`

And your answer should be: A= $2249.728

Answer 2

240 because 2000x0.04=80 X3= 240