SOLUTION: Lorena is investing a $5000 inheritance from her aunt in a certificate of deposit that matures in 4 years. The interest rate is 6.25% compounded quarterly. What is the balance of t
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Question 1038455: Lorena is investing a $5000 inheritance from her aunt in a certificate of deposit that matures in 4 years. The interest rate is 6.25% compounded quarterly. What is the balance of the account after 4 years?
$5,078.13
$5,319.90
$5,321.82
$6,407.73 Answer by solver91311(24713) (Show Source):
where is the future value, is the present value or invested principal, is the decimal representation of the annualized interest rate, is the number of compounding periods per year, and is the number of years.
Plug in your numbers and do the arithmetic.
John
My calculator said it, I believe it, that settles it
