Answer:
Step-by-step explanation:
Given the following :
Compounding interest on CD (r) = 11.86%
Period (t) = 10 years
A) If $10,000 is invested in the CD ; worth in 10 years will be ;
A = P(1 + r)^t
Here, P = $10,000
A = final amount or worth
A = 10,000(1 + 0.1186)^10
A = 10,000(1.1186)^10
A = 10,000 × 3.067242759
A = $30672.43
B. How long will it take for the account to be worth $35,000?
A = $35,000 final worth
35000 = 10,000(1 + 0.1186)^t
35000 = 10000(1.1186)^t
Divide both sides by 10000
1.1186^t = 3.5
t = 3.5 / In(1.1186)
t = 3.5 / 0.1120779
t = 31.228
t = 31. 23years
