Answer:
A.) $61682.97
B.) $11,682.97
Step-by-step explanation:
Initial deposit (A) = $50000
Period(t) = 4 years
Interest(r) = 5.25% annually,
n = number of times interest is compounded
Amount of the CD in four years :
Compound interest formula :
A = final amount
A = P(1 + r/n) ^nt
A = $50,000( 1 + (0.0525/365))^365×4
A = $50,000( 1 + 0.00014383562)^1460
A = $50,000(1.00014383562)^1460
A = $50,000(1.23365943637930)
A = $61682.9718189651
B.) Interest = $61682.97 - $50,000
Interest = $11,682.97
