lindsey invested $3,250 in a cd that paid compound interest at a rate of 6.5% per year A $4,095 B $211.25 C $845 D $ 3,276
Mathematics · College · Tue Nov 03 2020
Answered on
Given:
Principal Amount: $3,250
Interest rate: 6.5% or 0.065
Compounded per year(n): 1
The term is not stated, so we will assume that the term is 1 year.
t = 1
Formula for compound interest.
A = P ( 1 + r/n)^nt
Solution:
Substitute the given values to the formula for compound interest.
A = P ( 1 + r/n)^nt
A = $3,250 ( 1 + 0.065/1)^1(1)
A = $3,250 ( 1.065)
A = $3461.25
Final answer:
A = $3461.25