Suppose that $32,600 is invested in a certificate of deposit for 1 year at 8.5% annual interest to be compounded quarterly. How much interest will this investment earn? Round your answer to the nearest cent, if necessary
+23248 The compound interest formula is: A = P(1 + r/n)^(n·t)
A = Final Amount P = Beginning Amount = 32,600 r = rate (as a decimal) = 0.085
n = number of times compounded per year = 4 t = number of years = 1
A = 32600(1 + 0.085/4)^(4·1) = 35460.58
Interest earned will be final amount minus beginning amount: $35,460.58 - $32,600.00 = $2860.58
+23248 The compound interest formula is: A = P(1 + r/n)^(n·t)
A = Final Amount P = Beginning Amount = 32,600 r = rate (as a decimal) = 0.085
n = number of times compounded per year = 4 t = number of years = 1
A = 32600(1 + 0.085/4)^(4·1) = 35460.58
Interest earned will be final amount minus beginning amount: $35,460.58 - $32,600.00 = $2860.58
