Question

I will give brainiest to whoever answers correctly !!

Answer 1

Answer:

The graduate will have $4,084.97 when he cashes in the CD at the end of the 36-months.

Step-by-step explanation:

This can be determined using the formula for calculating the future value (FV) formula as follows:

FV = PV * (1 + r)^n ................................. (1)

Where;

FV = Future value or the amount the graduate will have at end of 36 months = ?

PV = Present value or the total amount invested = Cash gifts from friends and relatives + Amount of 3 scholarships he received = $900 + $250 + $300 + $1,400 = $2,850

r = daily interest rate = 1% / 360 = 0.01 / 360 = 0.0000277777777777778

n = number of days = 36 months * 360 days = 12,960

Substituting the values into equation (1), we have:

FV = $2,850 * (1 + 0.0000277777777777778)^12,960

FV = $2,850 * 1.43332224806396

FV = $4,084.96840698229

Approximating to the nearest cent as required, we have:

FV = $4,084.97

Therefore, the graduate will have $4,084.97 when he cashes in the CD at the end of the 36-months.