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You open a 5-year certificate deposit (CD) for $1,000 that pays 2 % interest compounded annually. What is the value of that CD at the end of the 5 years? Show your work!

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter6: Saving And Investing

Section6.1: Why Save?

Problem 6R

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Question

You open a 5-year certificate deposit (CD) for $1,000 that pays 2 % interest compounded annually. What is the value of that CD at the end of the 5 years? Show
your work!
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