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dmitriy555 [2]
3 years ago
10

Savanna Smiles invested $5,000 for one year in a CD that earns interest at a rate of 3.5% compounded monthly. What is the intere

st earned during the year? (Hint: Use the appropriate formulas and round at the end.)

Mathematics
1 answer:
weeeeeb [17]3 years ago
5 0
We are asked to solve for the interest during the year given that it is compounded monthly, we are given with the formula A = P(1+r)^n. The solution is shown below:
A = P (1+r)^n
A = $5,000 (1+ 3.5/12)^(12*1)
A = $5,000 (1.000292)^12
A = $5,177.84

 
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