Given:
Initial investment, P = $1,200.00.
Interest rate, r =2.6 %.
The period of time, t =2 years.
Required:
We need to find the balance on a CD.
Explanation:
A is the total that your CD will be worth at the end of the term.
Consider the formula to find CD.
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
Substitute P = 1200.00 and r = 2.6 %=0.026, and n=1 in the formula.
[tex]A=1200(1+\frac{0.026}{1})^{1\times2)}[/tex][tex]A=1263.21[/tex]
Final answer:
The balance after two years on a CD is $ 1,263.21.
