Answer:
Given that certificate of deposits earns 0.75% interest every three months, the value of $25,000 after 8 years will be:
A=P(1+r/100)^nt
where:
A=amount
P=principle
r=rate
t=time
n=number of terms
thus:
from the infomation
$25000, r=0.75%, t=8 years, n=12/3=4
thus
A=25000(1+0.0075/100)^(4*8)
A=25000(1.0075)^32
A=$3175.28
Step-by-step explanation:
