SOLUTION: Please help me with this: If I deposit $10,000 in an certificate of deposit for 18 months at an interest rate of 1.26% how much will it be worth at the end of the 18 months?
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Question 480748: Please help me with this: If I deposit $10,000 in an certificate of deposit for 18 months at an interest rate of 1.26% how much will it be worth at the end of the 18 months?
Thanks! Answer by Theo(13342) (Show Source):
You can put this solution on YOUR website! if the interest is compounded monthly, then the CD will be worth 10,000 * (1+(.0126/12))^18 = 10,190.69631 dollars.
this assumes your annual interest rate is 1.26% which is equal to a rate of .0126 per year.
to get an equivalent rate per month, you divide .0126 by 12 to get .00105.
you then multiply 10,000 * (1 + .00105)^18 which becomes:
10,000 * (1.00105)^18 which becomes equal to 10,190.69631
