Mathematics: Suppose you buy a cd for $500 that earns 2.5% apr and is compounded quarterly. the cd matures in 3 years. how much will this cd be worth at maturity? a. $512.62 b. $538.82 c. $512.64 d. $504.18

Suppose you buy a cd for $500 that earns 2.5% apr - id500253429160, muravyevaarina

Ответ:

villafana36

07.01.2022

We're going to use the compounded intrest formula:

$A = P(1+\frac{r}{n})^{nt}$

Where P is the initial cost
r is the rate as a decimal
n is the amount per year that you invest the rate
t is the amount of time at which you're checking how much it's worth (yrs)

Using this information, we can use:

$A = 500(1+\frac{0.025}{4})^{3*4} \approx 538.82$

So your answer will be B.