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ludmilkaskok [199]
4 years ago
8

Investment: Suppose you receive a gift of $1,000 and decide to open a CD (certificate of

Mathematics
1 answer:
Nina [5.8K]4 years ago
4 0

Answer: 4 years after the original investment, it is approximately $1,093.

Step-by-step explanation:

Hi, to answer this question we have to apply the simple interest formula:  

I = p x r x t

Where:  

I = interest

P = Principal Amount  

r = Interest Rate (decimal form)  

t= years

Replacing with the values given  

I = 1000x (2.25/100) x t

  • It will triple in approximately 3 years. FALSE

I = 1000x (2.25/100) x 3 =67.5

1000+67.5 = 1067.5

  • It will no longer grow after several years: False, it will grow because it has a growth rate.

  • 4 years after the original investment, it is approximately $1,093. TRUE

I = 1000x (2.25/100) x 4 =90

1000+90 = $1090

  • It will double in approximately 10 years.

I = 1000x (2.25/100) x 10 =225

1000+90 = $1225

Feel free to ask for more if needed or if you did not understand something.

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Step-by-step explanation:

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Step-by-step explanation:

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