Question

Gracie bought a cd for $810 that earns a 2.9 APR and is compounded quarterly. The CD matures in 5 years. How much will this CD be worth at maturity?

0
A: $909.26
B:935.90
C:963.34
D:$883.25

Answer 1

The amount that this CD will be worth at maturity would be $935.90. The right answer is B.

Explanation:

In order to calculate How much will this CD be worth at maturity we would have to use and calculate the formula of future value as follows:

Future Value=Present value×(1+i/n)∧nt

Future Value=$810×(1+2.9%/4)∧(4×5)

Future Value=$935.90

The amount that this CD will be worth at maturity would be $935.90