Problema Solution
Marco is saving for tuition cost at a state university. He depoited $8500 in a 4-year certficate of deposit earning 7.25% compunded mothly.
A. Write an equation for the amunt of money Marco will have at the end of four years.
n t
A=P(1+ r_ )
n
Answer provided by our tutors
A=P(1+r/q)^nq.
r=7.25%=0.0725.
q=12.
A=8500*(1+0.0725/12)^4*12.
=8500*(1.0725)^48.
$244618.54.