SOLUTION: Graduation is 5 years away and you want to have $950 available for a trip. If your bank is offering a 5-year CD (certificate of deposit) paying 2.8% simple interest, how much do yo
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Question 1119877: Graduation is 5 years away and you want to have $950 available for a trip. If your bank is offering a 5-year CD (certificate of deposit) paying 2.8% simple interest, how much do you need to put in this CD to have the money for your trip? Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! 950=x(1.028)^5, where x is the amount needed. This is annual compounding and there are 5 years.
950=x*1.148
x=$827.48 (not rounding the intermediate calculation).
