Question

Marcus receives an inheritance of 6,000 he decides to invest the money in a 14-year certificate of deposit that pays 6.5% interest compounded monthly. How much money will Marcus receive when he redeems the CD at the end of the 14 years?

Answer 1

Marcus will receive $14869.38  at the end of the 14 years

Step-by-step explanation:

The rule of the future value of the compound interest is:

$FV=P(1+\frac{r}{n})^{nt}$, where

1. P is the invested money

2. r is the rate of interest in decimal

3. n is the period of compound interest

4. t is the time

Marcus receives an inheritance of 6,000 he decides to invest the

money in a 14-year certificate of deposit that pays 6.5% interest

compounded monthly

We need to find how much money Marcus will receive at the end of

the 14 years

∵ P = $6000

∵ r = 6.5% = 6.5/100 = 0.065

∵ n = 12 ⇒ compounded monthly

∵ t = 14

Substitute these values in the rule above

∴ $FV=6000(1+\frac{0.065}{12})^{(12)(14)}$

∴ FV = $14869.38

Marcus will receive $14869.38  at the end of the 14 years

Learn more;

You can learn more about compound interest in brainly.com/question/4361464

#LearnwithBrainly