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love history [14]
3 years ago
7

david invest $10,000 in a CD that pays 8% compounded quarterly. how long will it take his investment to double

Advanced Placement (AP)
1 answer:
Reptile [31]3 years ago
8 0
The annual interest rate is restated to be the quarterly rate of i = 2% (8% per year divided by 4 three-month periods). The present value of $10,000 will grow to a future value of $10,824 (rounded) at the end of one year when the 8% annual interest rate is compounded quarterly.
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