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20 May, 06:22

James put $1000 in a 2-year CD paying 7% interest, compounded monthly.

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  1. 20 May, 10:11
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    To find the future value of this investment the formula is

    A=p (1+r/k) ^kt

    A future value?

    P present value 1000

    R interest rate 0.07

    K compounded monthly 12

    T time 2 years

    A=1,000 * (1+0.07:12) ^ (12*2)

    A=1,149.81
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