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Andreas93 [3]
3 years ago
14

JG Asset Services is recommending that you invest $1,275 in a 5-year certificate of deposit (CD) that pays 3.5% interest, compou

nded annually. How much will you have when the CD matures
Business
1 answer:
ArbitrLikvidat [17]3 years ago
5 0

Answer:

The amount that will be received when CD matures is $1514.30

Explanation:

To calculate the amount that will be received at the maturity of the CD, we simply need to calculate the future value of the invested amount using annual compounding. The formula for the future value that we will use is,

Future value = Present value * (1+r)^t

Where,

  • r is the rate of interest
  • t is the time in years

Future value = 1275 * (1+0.035)^5

Future value = $1514.30

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An advantage of magazine advertising is that:
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Answer:

A suitable advantage of magazine advertisement is option C.

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