SOLUTION: If I buy a cd for 5000 at 1.7 percent what will my return be on my money after five years

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: If I buy a cd for 5000 at 1.7 percent what will my return be on my money after five years       Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 1070564: If I buy a cd for 5000 at 1.7 percent what will my return be on my money after five years
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
If compounded annually, I=prt=5000*0.017*5=$425, now worth $5425
if compounded continuously, A=Aoe^rt, Ao=5000, r=0.017, t=5
A=5000*e^0.085=5000*1.089, and rounding only at the end, A=$5443.59
For other compoundings, the result would be in between.