Question

3. Maureen invested $5,000 in a 8-year CD

that eamed an annual interest rate of 4%. How
much money will he receive at the end of the 8
years if the interest was compounded monthly?
(black)

Answer 1

6,881.9755

Explanation:

A = P(1 + r/n)^nt

= 5000(1 +
`(.04)/(12)`)^12(8)

= 5000(1.00333)⁹⁶

= 5000(1.37639)

= 6,881.9755