Get reliable answers to your questions at Westonci.ca, where our knowledgeable community is always ready to help. Join our platform to connect with experts ready to provide accurate answers to your questions in various fields. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

Betty invests $45,000 into a cd which has an interest rate of 6.3% that compounds monthly for a total of 5 years. how much will betty have after the 5 years? (rount to the nearest dollar)

Sagot :

[tex]~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$45000\\ r=rate\to 6.3\%\to \frac{6.3}{100}\dotfill &0.063\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{monthly, thus twelve} \end{array}\dotfill &12\\ t=years\dotfill &5 \end{cases} \\\\\\ A=45000\left(1+\frac{0.063}{12}\right)^{12\cdot 5}\implies A=45000(1.00525)^{60}\implies A\approx 61611[/tex]