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You deposit $10,000 in a certificate of deposit that pays interest of 4.25% per annum. What amount...

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Finance

You deposit $10,000 in a certificate of deposit thatpays interest of 4.25% per annum.

What amount will your deposit grow to after five yearsif the bank compounds interest:

a. Annually

b. Semi-Annually

c. Quarterly

d. Monthly

e. Daily

Please show all your work and explain youranswers.

 

Answer & Explanation Solved by verified expert
3.8 Ratings (569 Votes)
Answer a Amount Invested 10000 Annual Interest Rate 425 Period 5 years Future Value Amount Invested 1 Interest RatePeriod Future Value 10000 104255 Future Value 1231347 Answer b Amount Invested 10000 Annual    See Answer
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Transcribed Image Text

You deposit $10,000 in a certificate of deposit thatpays interest of 4.25% per annum.What amount will your deposit grow to after five yearsif the bank compounds interest:a. Annuallyb. Semi-Annuallyc. Quarterlyd. Monthlye. DailyPlease show all your work and explain youranswers. 

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