Question

A youth sports league held various fundraisers. They received $350 from a car wash, $337 from a bake sale, and $490 from a used equipment sale. The league decides to invest this money in a 3 year CD that pays 2.2% interest compounded daily. How much will the league receive from the CD in 3 years?

Answer 1

Given that the received amount was $350 from a car wash, $337 from a bake sale, and $490 from a used equipment sale.

Also, the interest rate is 2.2 % and the time period is 3 years.

Thus, the total amount is as follows:

$\begin{gathered} \text{Total amount = 350+337+490} \\ \text{Total amount = }1177 \end{gathered}$

Next, the accumulated amount can be calculated as follows:

$\begin{gathered} Accumulated\text{ amount = P(1+}\frac{R}{100})^n \\ Accumulated\text{ amount }=\text{ 1177(1+}\frac{2.2}{100})^3 \\ Accumulated\text{ amount }=1177(\frac{102.2}{100})^3 \end{gathered}$

Further, solve the obtained result as follows:

$\begin{gathered} Accumulated\text{ amount }=\text{ 1177}\times(1.022)^3 \\ Accumulated\text{ amount }=1177\times1.067 \\ Accumulated\text{ amount }=1256.40 \end{gathered}$

Thus, the league will have $1256.40 in their account after 3 years.