sally deposited $4,000 in a certificate of deposit that paid 2.75% interest compounded annually. what was her balance after one year

Question

sally deposited $4,000 in a certificate of deposit that paid 2.75% interest compounded annually. what was her balance after one year

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Eliza 2 weeks 2021-11-25T03:35:24+00:00 1 Answer 0

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    2021-11-25T03:36:35+00:00

    Answer:

    $4,110

    Step-by-step explanation:

    In compound interest, Future Value formula is;

    FV = PV (1+r)^n

    PV= amount deposited in present value terms = $4,000

    r = interest rate = 2.75% or 0.0275 as a decimal

    n= total duration of investment = 1

    FV = 4000*(1+0.0275)^1

    FV = 4000*(1.0275)^1

    FV = 4000 *1.0275

    FV = $4,110

    Therefore, her balance will be $4,110

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