Question

Gordon invested $28,000 into a CD compounded quarterly with an annual interest

Answer 1

Answer:

Gordon will have $ 34,178 after 8 years of investment.

Step-by-step explanation:

Given that Gordon invested $ 28,000 into a CD compounded quarterly with an annual interest rate of 2.50%, to determine how much money Gordon would have after 8 years, the following calculation must be performed:

28,000 x (1 + 0.025 / 4) ^ 8x4 = X

28,000 x (1 + 0.00625) ^ 32 = X

28,000 x 1.00625 ^ 32 = X

28,000 x 1,220 = X

34,177.997 = X

Therefore, Gordon will have $ 34,178 after 8 years of investment.