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elixir [45]
4 years ago
7

Myron put $5000 in a 2-year CD paying 3% interest, compounded monthly. After 2 years, he withdrew all his money. What was the am

ount of the withdrawal?
Mathematics
2 answers:
Tju [1.3M]4 years ago
7 0

Answer: $5156.71

Step-by-step explanation:

rodikova [14]4 years ago
6 0

Answer:

  $5308.79

Step-by-step explanation:

The future value can be computed from ...

  FV = P(1 +r/n)^(nt)

where P is the principal invested, r is the annual interest rate, n is the number of times per year it is compounded, and t is the number of years.

You have P = $5000, r = 0.03, n = 12 (months per year), t = 2.

Filling in the given numbers, we have ...

  FV = $5000(1 +.03/12)^(12·2) ≈ $5000(1.0617570) ≈ $5308.79

The amount of the withdrawal will be $5308.79.

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