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 25 months?

How much interest did she earn?

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 25 months?

How much interest did she earn?

skullpatrol · Answer

What is a "CD?"

skullpatrol · Answer

@mvesling  ?

anonymous · Answer

certificate of deposit

skullpatrol · Answer

So after the first month her $25,000 has earned 2.47% of $25,000 interest, right?

anonymous · Answer

yes

skullpatrol · Answer

Now that amount of interest gets added on to her original $25,000.to get a new amount.

25000+(0.0247)(25000) <----new amount

anonymous · Answer

okay so that is what her investment is worth at the end

anonymous · Answer

?

skullpatrol · Answer

Take that new amount and take 2.47% of it to find the interest for the second month.

You have to do this 25 times to find out the total interest for 25 months.

anonymous · Answer

I think this would be an easier equation A= 25000(1+.0247/12) ^(25)