Question

Emily gast deposits $50,000 in a 4-year cd that earns interest at an annual rate of 5.25% compounded daily. (a) find the amount of the cd in 4-years. (b) find the interest earned in 4-years

Answer 1

Answer:

a) $61,607.75

b) 11.607.75

Step-by-step explanation:

Kindly check attached picture for detailed calculation

Answer 2

Answer:

A.) $61682.97

B.) $11,682.97

Step-by-step explanation:

Initial deposit (A) = $50000

Period(t) = 4 years

Interest(r) = 5.25% annually,

n = number of times interest is compounded

Amount of the CD in four years :

Compound interest formula :

A = final amount

A = P(1 + r/n) ^nt

A = $50,000( 1 + (0.0525/365))^365×4

A = $50,000( 1 + 0.00014383562)^1460

A = $50,000(1.00014383562)^1460

A = $50,000(1.23365943637930)

A = $61682.9718189651

B.) Interest = $61682.97 - $50,000

Interest = $11,682.97