MATH SOLVE

2 months ago

Q:
# 1) Ethan put $700 into a Certificate of Deposit (CD) account that earns 1.8% interest each year. What will the interest of the CD account be after 6 years?

Accepted Solution

A:

Answer: The interest After 6 years is $ 79.03 Step-by-step explanation:Given as :The principal amount deposited in account = $ 700The rate interest earn = 1.8 % per yearThe Time period = 6 yearsFrom Compounded Method Amount = Principal × [tex](1 +\dfrac{\textrm Rate}{100})^{\textrm Time[/tex]Or, Amount = $ 700 × [tex](1 +\dfrac{\textrm 1.8}{100})^{\textrm 6[/tex]Or, Amount = $ 700 × [tex]1.018^{6}[/tex]Or, Amount = $ 700 × 1.1129∴ Amount = $ 779.03Now , Interest = Amount - PrincipalI.e Interest = $ 779.03 - $ 700 = $ 79.03 Hence The interest After 6 years is $ 79.03 , Answer