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kherson [118]
3 years ago
13

Kyle has ​$1 comma 000 in cash received for high school graduation gifts from various relatives. He wants to invest it in a cert

ificate of deposit​ (CD) so that he will have a down payment on a car when he graduates from college in five years. His bank will pay 1.5​% per​ year, compounded​ annually, for the​ five-year CD. How much will Kyle have in five years to put down on his​ car?
Mathematics
1 answer:
Vera_Pavlovna [14]3 years ago
4 0

Answer:

$1077.283

Step-by-step explanation:

When complete the first year the amount will be:

1000 * 1.015= 1015

1.015 because the rate is added to the initial amount, that is: 100%+1.5% = 1 + 0.015= 1.015

When complete the second year the amount will be the last year amount adding the rate interest:

1015*1.015=1030.225.

To the third year:

1030.225*1.015=1045.678

To the fourth year:

1045.678*1.015=1061.363

To the fifth year:

1061.363*1.015=1077.283

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• divide through again by cos²(<em>A</em>)

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