Barbie buys a $1550 certificate of deposit (CD) that earns 3% interest that compounds monthly. How much will the CD be worth in 13 years? Express your answer rounded to the nearest cent. $ Barbie gets an offer from another bank that is also paying 3% on CD's, but is compounding interest daily. How much will a $1550 CD be worth in 13 years? Express your answer rounded to the nearest cent. $
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Step 1: The formula for compound interest is: $$A = P(1 + \frac{r}{n})^{nt}$$ where: * A is the amount of money after t years * P is the principal amount * r is the annual interest rate * n is the number of times that interest is compounded per year * t is the time Show more…
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