SOLUTION: On Melissas's 6th birthday, she gets a $3000 CD that earns 4% interest, compounded quarterly. If the CD matures on her 13th birthday, how much money will be available? Simplify

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Question 547058: On Melissas's 6th birthday, she gets a $3000 CD that earns 4% interest, compounded quarterly. If the CD matures on her 13th birthday, how much money will be available?
Simplify and round to nearest cent.
Answer by solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!


The formula for compound interest is



Where

is the future value

is the present value

is the annual rate expressed as a decimal

is the number of compounding periods per year

is the number of years

Plug in the numbers



and do the arithmetic. Better yet, let your fingers do the walking across the calculator keys.

John

My calculator said it, I believe it, that settles it
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