Question

Antuan deposited $2590 into a 3 year CD at an interest rate of 2.3% compounded quarterly.

Answer 1

Answer:

$2774.47

Step-by-step explanation:

To find how much Antuan's ending balance will be, we can use the formula for compound interest.

$A=P(1+\dfrac{r}{n})^{nt}$

The values that we currently have are:

P = 2590

t = 3

n = 4 quarterly

r = 2.3% or 0.023

Now we can plug these values into our formula.

$A=P(1+\dfrac{r}{n})^{nt}$

$A=2590(1+\dfrac{0.023}{4})^{4(3)}$

$A=2590(1+0.00575)^{12}$

$A=2590(1.00575)^{12}$

$A=2774.47$

So Antuan's ending balance will be $2774.47.