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12 August, 01:46

Joanne deposits $4,300 into a one-year CD at a rate of 4.3%, compounded daily. How much interest does she earn?

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  1. 12 August, 05:03
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    This is a compund interest problem which means that the formula to use is

    Final Amount = Initial investment (1 + (rate/100) / amount of times it is compounded per year) ^amount of times compounded per year*amount of years

    A = P (1+R/N) ^NT

    this means that Joanne's final amount is $4488.92 or that she earned $188.92 in interest
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