Pregunta
Future value (with changing years). Dixie Bank offers a certificate of deposit with an option to select
your own investment period. Jonathan has
for his CD investment. If the bank is offering a
interest rate, compounded annually, how much will the CD be worth at maturity if Jonathan picks a
a. three-year investment period?
b. five-year investment period?
c. ten-year investment period?
d. twenty-year investment period?
your own investment period. Jonathan has
interest rate, compounded annually, how much will the CD be worth at maturity if Jonathan picks a
a. three-year investment period?
b. five-year investment period?
c. ten-year investment period?
d. twenty-year investment period?
Ask by Carroll Gardner. in the United States
Jan 22,2025
Solución de inteligencia artificial de Upstudy
Respuesta verificada por el tutor
Responder
The future values of the CD for different investment periods are:
a. Three years: $8,682.19
b. Five years: $9,572.11
c. Ten years: $12,216.71
d. Twenty years: $19,899.73
a. Three years: $8,682.19
b. Five years: $9,572.11
c. Ten years: $12,216.71
d. Twenty years: $19,899.73
Solución

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Respondido por UpStudy AI y revisado por un tutor profesional
Como
Extra Insights
To calculate the future value of Jonathan’s certificate of deposit (CD) for different investment periods, we can use the formula for compound interest:
Where:
-
= Future Value -
= Principal Amount (initial investment, ) -
= Annual interest rate (5%, or 0.05) -
= Number of years
Let’s calculate:
a. For the three-year investment period:
b. For the five-year investment period:
c. For the ten-year investment period:
d. For the twenty-year investment period:
In summary:
- After 3 years: approximately
- After 5 years: approximately
- After 10 years: approximately
- After 20 years: approximately

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