Question

Claire has invested $10,000 in an 18-month CD that pays 6.25%. How much interest will Claire receive at maturity?

Answer 1

the interest received is $957.03

Explanation:

Given that

The invested amount is $10,000

There is 18 months

And, the interest rate is 6.25%

= (($10,000 × (1 + 6.25% ) × 0.0625 × 6 months ÷ 12 months)) + ($10,000 × 6.25%)

= $332.03 + $625

= $957.03

Hence, the interest received is $957.03