Question

Cristiana uses $25,000 to purchase a 25 month CD (certificate of deposit) that pays 2.47% compounded monthly.
a. What is her investment worth at the end of 25 months?
b. How much interest did she earn?

Answer 1

25000×.0247=617.5

617.5×25=15,437.5

25,000+15,437.5=40,437.5

her investment was worth 40,437.5
she earned 15,437.5