Question

Shannon bought a CD for $750 that earns 3.8% APR and is compounded

quarterly. The CD matures in 5 years. How much will this CD be worth at
maturity?
O A. $920.16
O B. $903.75
O C. $906.12
O D. $938.42
SUBMIT

Answer 1

it is $906.12

Explanation:

Answer 2

A = $906.12

choice C.)

Explanation:

A = P (1 + (r/k) )^(kt)

k = 4

t = 5 years

r = 0.038

P = $750

A = 750 *(1 + (0.038/4))^(4*5)

A = 750*(1.0095‬)^20

A = $906.12419927