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Mumz [18]
3 years ago
12

Suppose you buy a CD for $500 that earns 2.5% APR and is compounded quarterly. The CD matures in 3 years. How much will this CD

be worth at maturity?
A. $512.62
B. $538.82
C. $512.64
D. $504.18
Mathematics
2 answers:
Ilya [14]3 years ago
5 0
We're going to use the compounded intrest formula:

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

Where P is the initial cost
r is the rate as a decimal
n is the amount per year that you invest the rate
t is the amount of time at which you're checking how much it's worth (yrs)

Using this information, we can use:

A = 500(1+\frac{0.025}{4})^{3*4} \approx 538.82

So your answer will be B.
Ray Of Light [21]3 years ago
4 0

Answer:

$538.82 -_- APEX

Step-by-step explanation:

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