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suter [353]
3 years ago
6

Belinda finds a CD with 2.8% APR compounded annually. How much money will Belinda invest in this CD if she wants to have a yearl

y income of $35,000
Mathematics
1 answer:
Valentin [98]3 years ago
7 0
Belinda will need to use the simple compounding formula to get the yearly income of $3500. 
Present amount = Future amount /(1+interest)^payments
where
Future amount = $35000
interest = 2.8%
payments = 1
Subsitute all the given values, we will get the present amount
Present amount of CD = $34,046.7


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