SOLUTION: A couple invests $2,000 in a CD that earns 2.25% compounded quarterly. How much will they have in 3 years?

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Question 1032548: A couple invests $2,000 in a CD that earns 2.25% compounded quarterly. How much will they have in 3 years?
Found 2 solutions by Edwin McCravy, Boreal:
Answer by Edwin McCravy(20056) About Me  (Show Source):
You can put this solution on YOUR website!


P=2000,r=%222.25%25%22=0.025,t=3, n=4

(quarterly means 4 times per year.)



%22%242155.265198%22

Round down to 26 cents, because that's what banks do
because that makes them more money.

Answer: $2155.26

Edwin

Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
P=2000(1+(.0225)/4))^12; divide interest rate by 4, and there will be 12 compoundings.
$2139.26, rounding at the end.