Joanne deposits $4,300 into a one-year CD at a rate of 4.3%, compounded daily. How much interest does she earn?

Question

Cheyenne Grant

Mathematics

19 September, 01:36

Joanne deposits $4,300 into a one-year CD at a rate of 4.3%, compounded daily. How much interest does she earn?

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Answers (1)

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Aydan Johnson · Answer 1

This is a compund interest problem which means that the formula to use is

Final Amount = Initial investment (1 + (rate/100) / amount of times it is compounded per year) ^amount of times compounded per year*amount of years

A = P (1+R/N) ^NT

this means that Joanne's final amount is $4488.92 or that she earned $188.92 in interest