Question

Devin inveated $750 in a CD that pays 6% simple interest, calculated quarterly. How much money will Devin earn in 3 years?​

Answer 1

Answer:

135

885-750 is 135 on financial literacy

Answer 2

Answer:

$896.70

Step-by-step explanation:

Amount( A) Devi earned can be calculated from the formula below

$A =P ({ 1 + \frac{r}{m} })^{mt}$

Where,

P= principal=$750

r=rate=6%=0.06

m=compounding frequency=4

t=time=3yrs

$A =750 ({ 1 + \frac{0.06}{4} })^{(4 \times 3)}$

$A =750 ({ 1 + 0.015)}^{12}$

$A =750 \times ({ 1.015)}^{12}$

$A =750 \times 1.1956$

$A = 896.70$