SOLUTION: bonnie received a severance package from her job two yrs ago that included $10,000. She put the cash into a 3 yr cd that was paying 5.5% compound monthly. How much more interest wi

Question 611709: bonnie received a severance package from her job two yrs ago that included $10,000. She put the cash into a 3 yr cd that was paying 5.5% compound monthly. How much more interest will she receive from having the money in the cd for 3yrs, than she would have from putting the money in a simple interest savings for three yrs that paid 5.5%
Answer by rfer(16322) (Show Source): You can put this solution on YOUR website!
simple
I=Prt
I=10000*0.055*3
I=$1,650
--------------
compounded
A=10000(1+0.055/12)^3*12
A=10000(1.004583)^36
A=10000*1.178935
A=11789.35
I=11789.35-10000
I=$1,1789.35
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