SOLUTION: you walk into the bank and see a sign advertising a cd special this week only. it offers 5.5% per year on any investment of 4 years. you check your bank account balance and decide
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Question 988482: you walk into the bank and see a sign advertising a cd special this week only. it offers 5.5% per year on any investment of 4 years. you check your bank account balance and decide you can afford to invest $500 and you buy the cd(spend the $500 on a cd). what is the total value of the account after 4 years? Answer by solver91311(24713) (Show Source):
The answer depends on how many times the interest is compounded each year.
Where is the future value, is the principal invested, is the interest rate expressed as a decimal, is the number of compounding periods per year, and is the number of years.
Once you have all of the information, plug in the numbers and do the arithmetic.
John
My calculator said it, I believe it, that settles it
