Question 920366
if Alice deposited $200 in a 2 1/2 year cd at 1.51%, what will the CD make at the end of its term if interest is compounded quarterly. use the compound interest formula and round to the nearest cent.
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Compound Interest Formula: A=P(1+r/n)^nt, P=initial investment, r=interest rate, n=number of compounding periods per year, A=amt after t-years.
For given problem:
P=$200
r=1.51%
n=4
t=2.5
..
A=200(1+(.015/4))^(4*2.5)
A=200(1+.00375)^(10)
A=200(1.00375)^(10)=207.63
what will the CD make at the end of its term? $207.63