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Elis [28]
3 years ago
9

Lori buys a $400 certificate deposit that earns 1.8% interest compounded monthly how much will a cd be worth in six years

Mathematics
1 answer:
Firlakuza [10]3 years ago
8 0

Answer:

$1445.11

Step-by-step explanation:

The formula to use would be:

F=P(1+r)^t

Where

F is the future amount (what we want to find)

P is the present (principal) amount (this is 400)

r is the rate of interest, monthly (1.8% or 0.018)

t is the time in months (6 years = 6 * 12 = 72)

Now substituting, we get:

F=P(1+r)^t\\F=400(1+0.018)^{72}\\F = 400(1.018)^{72}\\F=1445.11

After 6 years, the CD will be worth $1445.11

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