Question

LaDonna uses $25,000 to purchase a 25 month CD that pays 2.47% compounded monthly. What is her investment worth at the end of the 25 months? How much interest did she earn?

Answer 1

I am setting it up as

A= 25000(1+.0247/12) ^(12*25)

I feel like I am adding the 25 month number in incorrectly!

Answer 2

or should I be putting in 2.1 for 2years and 1 month!?

Answer 3

A= 25000(1+.0247/12) ^(25)

Answer 4

Thank you!

Answer 5

You have 25 periods and the interest for each period is .0247/12