Question

Gordon invested $77,000 into a CD compounded quarterly with an annual interest

rate of 6.30%. Determine how much money Gordon would have after 9 years.
Round your answer to the nearest cent. Provide only a numerical answer (For
example, if the final amount came to $5,023.97, then you would input 5023.97).
Your Answer:
Answer

Answer 1

$135,150.18

Explanation:

We're gonna use the quarterly compound interest formula: P = A(1 + r/4)⁴ⁿ

P = final amount (?)

A = starting amount (77,000)

r = rate (0.063)

n = years (9)

P = 77000(1 + 0.063/4)⁴ ˣ ⁹

P = 77000(1 + 0.063/4)³⁶

P = 77000(1.01575)³⁶

P = 77000(1.7551972)

P = 135,150.1844