Question

You want to purchase an 4-year certificate of deposit (CD) that pays 3.7% interest per year.

If you put $2,000 into the CD today, how much money will you have when the CD matures at the end of year 4?

Answer 1

Solution:-

To Calculate money will you have when the CD matures at the end of year 4 -

Future Value = Present Value *

Future Value = $2,000 *

Future Value = $2,000 *

Future Value = $2,000 * 1.156418

Future Value = $2,312.84

money will you have when the CD matures at the end of year 4 is amounting to $2,312.84.

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