SOLUTION: Bill sells is vintage 1974 Road Runner for $9500. He uses the money to invest in a 36 month CD that pays 4.12% interest compounded quartely. How much money will he receive when he

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Question 88925: Bill sells is vintage 1974 Road Runner for $9500. He uses the money to invest in a 36 month CD that pays 4.12% interest compounded quartely. How much money will he receive when he cashes in his CD at the end of the 36 months?
Answer by stanbon(48558) About Me  (Show Source):
You can put this solution on YOUR website!
Bill sells is vintage 1974 Road Runner for $9500. He uses the money to invest in a 36 month CD that pays 4.12% interest compounded quartely. How much money will he receive when he cashes in his CD at the end of the 36 months?
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A = P(1+r/n)^(nt)
Your Problem:
A is the future value
P is the pricipal or investment
r is the yearly interest rate
n is the number of compounding periods per year
t is the number of years
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A = 9500(1+0.0412/4)^(4*3)
A = 9500(1.1308)
A = $10743.06
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Cheers,
Stan H.