SOLUTION: Bill sells is vintage 1974 Road Runner for $9500. He uses the money to invest in a 36 month CD that pays 4.12% interest compounded quartely. How much money will he receive when he

Algebra ->  Customizable Word Problem Solvers  -> Misc -> SOLUTION: Bill sells is vintage 1974 Road Runner for $9500. He uses the money to invest in a 36 month CD that pays 4.12% interest compounded quartely. How much money will he receive when he      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 88925: Bill sells is vintage 1974 Road Runner for $9500. He uses the money to invest in a 36 month CD that pays 4.12% interest compounded quartely. How much money will he receive when he cashes in his CD at the end of the 36 months?
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
Bill sells is vintage 1974 Road Runner for $9500. He uses the money to invest in a 36 month CD that pays 4.12% interest compounded quartely. How much money will he receive when he cashes in his CD at the end of the 36 months?
-----------
A = P(1+r/n)^(nt)
Your Problem:
A is the future value
P is the pricipal or investment
r is the yearly interest rate
n is the number of compounding periods per year
t is the number of years
--------------------
A = 9500(1+0.0412/4)^(4*3)
A = 9500(1.1308)
A = $10743.06
==================
Cheers,
Stan H.