Question

Daniel purchased a 1 year CD, c, from a bank. He bought it at an annual interest rate of 6%. After 1 year, Daniel cashes in the CD. What is the total amount it it worth?

Answer 1

Step-by-step explanation:

if I understand correctly, then he bought a CD with a balance of c and an annual interest rate of 6%.

now, after this one year the CD is worth (the account balance is) c + 6% = 100% + 6% = 106% = 1.06×c