Question

Find the cost of a cd in 6years,assuming an inflation rate if 4% , if its present cost is $11.95

Answer 1

The cost of a cd after 6 year is =$ 15.12

Explanation:

The present cost of the cd is $11.95 and inflation rate 4%

P = $11.95 , r = 4% and n = 6 years

The cost of a cd after 6 year is =
`P (1+(r)/(100))^n`

=$
`11.95(1+(4)/(100))^6`

=$ 15.12