Question

Your invest $88,000 a CD that is locked into a 1.75% interest rate compounded monthly for seven years how much will Urich have an account with the CD matures

Answer 1

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$88000\\ r=rate\to 1.75\%\to (1.75)/(100)\dotfill &0.0175\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{monthly, thus twelve} \end{array}\dotfill &12\\ t=years\dotfill &7 \end{cases}`

`A=88000\left(1+(0.0175)/(12)\right)^(12\cdot 7)\implies A=88000\left( (4807)/(4800)\right)^(84)\implies A\approx 99459.21`