Ask Question
2 October, 00:18

Scott Harris can invest $7,000 in a 1-year CD that earns interest at an annual rate of 4 percent compounded monthly. The amount per $1.00 is 1.040742. He can also invest $7,000 in a 1-year CD at annual rate of 4 percent compounded quarterly. The amount per $1.00 is 1.040604. What is the difference in the amount of interest earned for each investment?

A) $0.96

B) $0.81

C) $0.87

D) $0.88

+5
Answers (1)
  1. 2 October, 00:29
    0
    option A is answer.

    Step-by-step explanation:

    Amount of interest earned for compounded monthly for $1 = 1.040742

    Amount of interest earned for compounded quarterly for $1 = 1.040604

    Difference for $1 = 1.040742 - 1.40604

    =0.000138

    Difference for $7000 = $7000x0.000138

    = 0.966

    or $0.96
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Scott Harris can invest $7,000 in a 1-year CD that earns interest at an annual rate of 4 percent compounded monthly. The amount per $1.00 ...” in 📗 Mathematics if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers