Asked by
Diamond Medina
on Dec 02, 2024
Verified
If you invest $10,000 in a 4-year certificate of deposit (CD) paying 10 percent interest compounded annually, determine how much the CD will be worth at the end of 4 years.
A) $13,600
B) $45,730
C) $14,640
D) $15,958
Certificate of Deposit
A savings certificate with a fixed maturity date and fixed interest rate, issued by banks to individuals desiring to save money for a fixed period.
Compounded Annually
The process of calculating interest and adding it to the principal sum of a deposit or loan once per year.
Interest Rate
The rate at which interest is paid by borrowers for the use of money that they borrow from lenders.
- Ascertain the prospective value of a series of financial contributions or investments across diverse interest rates and time spans.
- Leverage the principles of compound interest across distinct financial circumstances.
Verified Answer
EI
Learning Objectives
- Ascertain the prospective value of a series of financial contributions or investments across diverse interest rates and time spans.
- Leverage the principles of compound interest across distinct financial circumstances.