Suppose that $37,700 is invested in a certificate of deposit for 4 years at 6% annual interest to be compounded monthly. How much interest will this investment earn? Round your answer to the nearest cent, if necessary. Note: 365 days in a year and 30 days in a month.
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The formula for compound interest is given by: \[ A = P \left(1 + \frac{r}{n}\right)^{nt} \] where: - \(A\) is the amount of money accumulated after n years, including interest. - \(P\) is the principal amount (the initial amount of money). - \(r\) is the annual Show more…
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Suppose that $25,200 is invested in a certificate of deposit for 4 years at 5.6% annual interest to be compounded semi-annually. How much interest will this investment earn? Round your answer to the nearest cent, if necessary. Note: 365 days in a year and 30 days in a month.
Andrew N.
1. You deposit $6,700 in a 2-year certificate of deposit (CD) earning 2.4% annual interest compounded daily. At the end of the 2 years, you reinvest the compound amount plus an additional $6,700 in another 2-year CD. The annual interest rate on the second CD is 2.8%, compounded daily. What is the compound amount when the second CD matures? (Assume all years have 365 days. Round your answer to the nearest cent.) 2. You plan to retire in 30 years and would like to have $1,000,000 in investments. How much money would you have to invest today at a 7% annual interest rate compounded daily to reach your goal in 30 years? (Assume all years have 365 days. Round your answer to the nearest cent.) 3. An agent is selling an investment that earns 4.835% compounded semiannually. What is the APY (in percent) of the investment? (Round your answer to the nearest hundredth of a percent.) 4. Calculate the future value (in dollars) of $1,150 deposited into an account earning an annual simple interest rate of 5% compounded daily after 3 years. (See Example 1 in this section. Round your answer to the nearest cent.) Use 365 for the number of days in a year. 5. A business analyst deposited $40,000 into an account earning an annual interest rate of 5.2% compounded monthly. If the analyst leaves the money in the account for 2 years, how much interest (in dollars) is earned on the account? (See Example 2 in this section. Round your answer to the nearest cent.) 6. How much money (in dollars) should be invested in an account that earns 6% interest, compounded quarterly, to yield $11,000 in 4 years? (See Example 3 in this section. Round your answer to the nearest cent.)
Taylor J.
1. You decide to invest $70,000 in a four-year loan CD with an interest rate of 1.6% compounded daily in a leap year. How much money will you have at the end of the CD? Answer to the nearest penny
Vishal P.
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