Problema Solution
Gretchen invested $1000 in a certificate of deposit (CD) that paid interest at a rate of 9% per year. How much was the CD worth at the end of 3 years?
Answer provided by our tutors
A = P(1+r)^n = 1000(1+9%)^3 = 1295.03
So the CD is $1295.03 at the end of 3 years