Question 102433: Mr. Money invested $10,000 in a certificate of deposit (CD) for three years at a rate of 3.75% compounded annually. What will be the value, A of the CD at the end of the three year period? Using the formula A=p(1+rt) where A is the final amount (value) ,p is the initial amount invested r is the annual interest rate and t is the time in years. Please explain this problem to me step by step Thank you
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Mr. Money invested $10,000 in a certificate of deposit (CD) for three years at a rate of 3.75% compounded annually. What will be the value, A of the CD at the end of the three year period? Using the formula A=p(1+rt) where A is the final amount (value) ,p is the initial amount invested r is the annual interest rate and t is the time in years.
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A = 10000(1+0.0375*3)
A = 10000(1+0.075)
A = 10000(1.075)
A = $10750.00
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Cheers,
Stan H.
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