Question

Devin inveated $750 in a CD that pays 6% simple interest, calculated quarterly. How much money will Devin earn in 3 years?​

Answer 1

135

885-750 is 135 on financial literacy

Answer 2

$896.70

Explanation:

Amount( A) Devi earned can be calculated from the formula below

`A =P ({ 1 + (r)/(m) })^(mt)`

Where,

P= principal=$750

r=rate=6%=0.06

m=compounding frequency=4

t=time=3yrs

`A =750 ({ 1 + (0.06)/(4) })^((4 * 3))`

`A =750 ({ 1 + 0.015)}^(12)`

`A =750 * ({ 1.015)}^(12)`

`A =750 * 1.1956`

`A = 896.70`