Cristiana uses $25,000 to purchase a 25 month CD (certificate of deposit) that pays 2.47%

compounded monthly

Principal amount 25000

Interest rate 2.47 percent per year = 0.0247

number of times compounded per year 12

Number of years 2

Amount after 25 months = 25000 (1 + 0.0247 / 12) ^ (25)

= 25000 (1.002058333) ^ (25)

Amount after 2 years = 26318.74

b)

26318.74-25,000 = 1,318.74

2)

Future amount 32349.72

Interest rate 4.27 percent per year = 0.0427

Number of times compounded per year 365

Number of years 18

Amount invested in 18 years = 32349.72 / (1 + 0.0427 / 365) ^ (6570)

= 32349.72 / (1.00011698630137) ^ (6570)

Amount invested before 18 years = 15000.00