Question

Sabrina purchases a $50 CD from a bank with 18% interest annually. Sabrina’s CD will be worth how much at the end of 9 years?

Answer 1

$\text{Use the appreciation equation:}\\\\A=P(1+r)^n\\\\\text{Plug in information}\\\\A=50(1+0.18)^9\\\\\text{Solve:}\\\\A=50(1+0.18)^9\\\\A=50(1.18)^9\\\\A=50(4.435453859151328768)\\\\A=221.772\\\\\text{Round to the nearest hundredths place}\\\\\boxed{\ 221.77}$