Question

3. Value of CD. Travis has invested $3,000 in a three-

month CD at 4%. How much will Travis have when
the CD matures

Answer 1

3,030

Step-by-step explanation:

The CD pays a 4% interest per month. Trevor invested for three months. The applicable interest rate is

=4% divided 12 months multiplied by three months

=4/12 x 3

=0.33333x 3

=1%

Trevor will have

=3000 +(1/100 x 3000)

=3000 + (0.01 x 3000)

=3000 + 30

=3,030