Question

Asked Nov 13, 2019

2 views

Lori buys a $1,075 certificate of deposit (CD) that earns 3.2% interest that compounds monthly. How much will the CD be worth in 12 years?

Step 1

Monthly interest rate and future value will be calculated using the formula,

Step 2

The monthly interest rate is calculated by dividing the annual rate with the number of months in a year. The annual rate of interest is 3.2% and hence, the monthly rate of interest comes out to be 0.267%

Step 3

The future value of a lump sum amount is the product of the present value and the future value compounding factor. The present value of ...

Tagged in

Find answers to questions asked by student like you

Show more Q&A

Q: Estimate the amount of carbon dioxide released in burning one gallon of gasoline. Give your answer i...

A: Obtain the amount of gasoline and carbon needed as follows.

Q: #31

A: (a)Since, A has a right inverse that is, there exist an n×m matrix C such that AC=ImThen,AC=(e1,e2,…...

Q: According to a certain central bank from 2000 to 2016 the average price of a new home in a certain r...

A: It is given that, the average price of a new home in a certain region increased by 79% to $483 thous...

Q: Find the periodic payment which will amount to a sum of $6000 if an interest rate 7% is compounded a...

A: Recall the following fact.

Q: H-W#1 R५ १ Illustrate/graph and obtain the require d for the funetior z--73-1i MDLMSAAD) Ec2)

A: Click to see the answer

Q: An actor bought a pearl, diamond, and ruby necklace for his famous wife for $46,000. In 2011 this ...

A: The auction price was $11,784,100.The original purchase price was $46,000.Assume that the auctioned ...

Q: Prove that if two triangles have congruent bases, then their areas are in the same ratio as their he...

A: To show that the ratio of the areas is equal to the ratio of the heights, if the two triangles have ...

Q: Advanced Math Question

A: To calculate the amount of work done by evaluating the corresponding line integral over the arc of t...

Q: involving two matrices A and B. Use the following matrices instead of those shown in your text 0 -3 ...

A: Click to see the answer