Question

Demetri's parents begin saving for his college funds when he was 10 years old. They invest $5,000 in a CD that earns 1.2% interest compounded annually. What will the balance in the CD be when he turns 18?​

Answer 1

Yes, the CD earns over $500 in interest over 8 years.

Explanation:

So basically the money was invested for when he was 10 to 18 so 8 years and when there is compound interest the value always increase so the working out u would do is times the original amount by 1.012 to the power of 8 And it should be more that the amount u need. I hope that makes sense. ¯\_(ツ)_/¯