7. Suppose you found a CD that pays 4.1% interest compounded monthly for 6 years. If you deposit $8,000 now, (A) how much will you have in the account in 6 years? (B) How much interest will you have earned? (C) What will the actual annual percentage yield (APY) be for the account?

Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
6th Edition
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Bruce Crauder, Benny Evans, Alan Noell
ChapterP: Prologue: Calculator Arithmetic
Section: Chapter Questions
Problem 2TU: If the annual percentage rate is 8% and the interest is compounded monthly, what is the amount owed...
icon
Related questions
Question
7. Suppose you found a CD that pays 4.1% interest compounded monthly for 6 years. If you deposit $8,000
now, (A) how much will you have in the account in 6 years?
(B) How much interest will you have earned?
(C) What will the actual annual percentage yield (APY) be for the account?
(D) Suppose you want to have $20,000 in the account in 6 years. How much would you need to deposit now?
Transcribed Image Text:7. Suppose you found a CD that pays 4.1% interest compounded monthly for 6 years. If you deposit $8,000 now, (A) how much will you have in the account in 6 years? (B) How much interest will you have earned? (C) What will the actual annual percentage yield (APY) be for the account? (D) Suppose you want to have $20,000 in the account in 6 years. How much would you need to deposit now?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Recommended textbooks for you
Functions and Change: A Modeling Approach to Coll…
Functions and Change: A Modeling Approach to Coll…
Algebra
ISBN:
9781337111348
Author:
Bruce Crauder, Benny Evans, Alan Noell
Publisher:
Cengage Learning