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Mashutka [201]
2 years ago
15

Anthony wants to buy CD for $400 that earns 2.5% APR and is compound quarterly. The CD matures in 3 years. Hi interest earned wi

ll not be reinvested in the cd. what will Anthony total interest earned be at the date of maturation? APEX
A. $60.00
B. $30.00
C. $15.00
D. $7.50
Mathematics
1 answer:
lukranit [14]2 years ago
5 0

Answer:

<em>The correct option is:   B.  $30.00</em>

Step-by-step explanation:

<u>The formula for compound interest</u> is.......

A=P(1+\frac{r}{n})^n^t , where A= Final amount, P= Initial amount, r= rate of interest in decimal form, n= number of compounding in a year and t= time duration in years.

Anthony wants to buy CD for $400 that earns 2.5% APR and is compound quarterly and the CD matures in 3 years.

So here,  P= 400, r=2.5\%=0.025, t= 3

As the CD is compounded quarterly, so here  n= 4

Plugging these values into the above formula......

A= 400(1+\frac{0.025}{4})^(^4^*^3^)\\ \\ A= 400(1+0.00625)^1^2\\ \\ A=400(1.00625)^1^2\\ \\ A= 431.053...

So, the amount of total interest earned = (\$431.053...-\$400)=\$31.053... \approx \$30.00(Approximately)

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The function, g(x), has a constant rate of change and will increase at a faster rate than the function f(x) for all the values of x.  

Given:

g(x) = 5/2 x -3 ..... (1)

f(x) = - 3.5 at x = 0

So, putting the value of x=0 in equation (1) for comparison. We get,

g(x) at x = 0

=> g(x) = 5/2 x (0) - 3

=> g(x) = -3

In this value of x function g(x) is faster than function f(x) having a value equal to -3.5.

Similarly, put x = 1 in equation (1) for comparison. We get,

=> g(x) = 5/2 x (1) - 3

=> g(x) = (5-6)/2

=> g(x) = -1/2

In this value of x function g(x) is faster than function f(x) having a value equal to -1.

Similarly, put x = 2 in equation (1) for comparison. We get,

=> g(x) = 5/2 x (2) - 3

=> g(x) = (5-3)

=> g(x) = 2

In this value of x function g(x) is faster than function f(x) having a value equal to 1.5.

Similarly, put x = 3 in equation (1) for comparison. We get,

=> g(x) = 5/2 x (3) - 3

=> g(x) = (15/2 - 3)

=> g(x) = 7.5 - 3

=> g(x) = 4.5

In this value of x function g(x) is faster than function f(x) having a value equal to 4.

Therefore, for all values of x function g(x) is faster than function f(x).

function f(x).

To learn more about the function visit: brainly.com/question/14996787

#SPJ1

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