Problema Solution
Tamika invests $3,000 in a 5-year cd that pays 5.35% interest compounded monthly. How much will she have in the account at the end of the 5-year period?
Answer provided by our tutors
P = 3000
r = 5.35/1200 = 0.004458
n = 5*12 = 60
A = 3000(1.004458)^60
A = 3917.75