SOLUTION: Find how much interest $25,000 earns in 4 years in a certificate of deposit paying 4.5% interest compounded quarterly.

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Question 987593: Find how much interest $25,000 earns in 4 years in a certificate of deposit paying 4.5% interest compounded quarterly.
Answer by solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!


The future value, , of an investment of , at a rate of expressed as a decimal, compounded times per year for years is given by:



The amount of interest earned is then



Just plug in your numbers and do the arithmetic.

John

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