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Aleonysh [2.5K]
2 years ago
14

Michael has been saving his money and wants to invest it. After doing some research, he has decided to invest $20,000 into a Cer

tificate of Deposit. The interest rate on the CD is 3% with a term of five years, and the interest is paid out annually. Based on recent inflation, Michael is planning on an annual inflation rate of 2%. How much interest will Michael earn on this CD in the first year, based on the real interest rate? $200 $600 $1,000 $1,400
IT IS NOT $600!!! THE CORRECT ANSWER IS $200 ON EDGE2020
Mathematics
2 answers:
LekaFEV [45]2 years ago
4 0

Answer:

Interest earned= $200

Step-by-step explanation:

Giving the following information:

Initial investment= $20,000

Interest rate= 3%

Inflation rate= 2%

First, we need to calculate the real interest rate. <u>The inflation rate decreases the value of money through time. We need to deduct from the interest rate, the inflation rate.</u>

Real interest rate= 0.03 - 0.02= 0.01

<u>Now, we can calculate the interest earned in year 1:</u>

Interest earned= PV*(1+i)^n - PV

Interest earned= 20,000*(1.01^1) - 20,000

Interest earned= $200

SSSSS [86.1K]2 years ago
4 0

Answer:

200

Step-by-step explanation:

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Answer:

I'll probably come back and do this later.

Step-by-step explanation:

<u>How to Round:</u>

If the number following the number you're going to round up is 5 or above, (5, 6, 7, 8, or 9), then round up. (E.X. 2<u>9</u> rounded up is 30. Since 9 is above 5, you will round up.

On the other hand, if the number following the number you're going to round is 4 or below, (4, 3, 2, or 1), you don't round up, instead you keep it the same, and if they're are decimals, you turn the following numbers to 0s. (E.X. 32.4536 rounded to the nearest hundredth (32.45<u>3</u>6) is 32.45. Since 3 is less than 4, you're not going to round up. The number in the hundredth's place stays the same (5), and the following rest turn to 0s. Leaving you with 32.45

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6 0
2 years ago
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Jose's school has 426 students. His principal has promised the Student Council that their idea will be carried out if they can
evablogger [386]

Answer:

they need 25 more signatures to get their idea carried out

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3 0
3 years ago
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Determine the rate of change for thw graph: $____ per mile​
Ira Lisetskai [31]

Answer:

$2 per mile

General Formulas and Concepts:

<u>Pre-Algebra</u>

Order of Operations: BPEMDAS

  1. Brackets
  2. Parenthesis
  3. Exponents
  4. Multiplication
  5. Division
  6. Addition
  7. Subtraction
  • Left to Right

<u>Algebra I</u>

  • Slope Formula: m=\frac{y_2-y_1}{x_2-x_1}

Step-by-step explanation:

<u>Step 1: Define</u>

<em>Find points from graph.</em>

Point (2, 5)

Point (4, 9)

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  1. Substitute:                    m=\frac{9-5}{4-2}
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Aaliyah needed to get her computer fixed. She took it to the repair store. The technician at the store worked on the computer fo
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Answer:

Equation: (441-66)divide by 3

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441-66=275

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8 0
2 years ago
1. 15 is what percent of 40?<br> 2. 15 is 30% of what number?<br> 3. What number is 120% of 70?
Elis [28]
<span>1. 15 is what percent of 40?
   15 * 100 / 40 = 37.5
answer is </span><span>15 is 37.5% of 40
</span><span>
2. 15 is 30% of what number?
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answer : </span>15 is 30% of 50<span>

3. What number is 120% of 70?
120% = 1.2
1.2 + 1 = 2.2

2.2 * 70 = 154
answer: 154</span> is 120% of 70?<span>


</span>
5 0
2 years ago
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