Question

3. Maureen invested $5,000 in a 8-year CD
that eamed an annual interest rate of 4%. How
much money will he receive at the end of the 8
years if the interest was compounded monthly?
(black)

Answer 1

Answer:

6,881.9755

Step-by-step explanation:

A = P(1 + r/n)^nt

   = 5000(1 + $\frac{.04}{12}$)^12(8)

   = 5000(1.00333)⁹⁶

   = 5000(1.37639)

    = 6,881.9755