Jim invested $750 in a 3-year CD that earns 4.2% annual interest that is compounded monthly. How much will the CD be worth at the end of the 3-year term?

Question

anonymous · Answer

it would be worth $844.50 after earning its interest

anonymous · Answer

@shelbygt520 how did you find that answer?

anonymous · Answer

ok 4.2% of $750 is equal to $31.50 multiplied by 3 is equivalent to $94.50 + $750= 844.50.

anonymous · Answer

cause to start Jim only invests $750 but as it accumulates interest over the 3 year term he gains $31.50 a year * 3 is equal to $94.50 and then you add the $750

anonymous · Answer

capish :) ?

anonymous · Answer

@shelbygt520 almost... how did you get 31.50$

anonymous · Answer

ok if you type in 750 into you calculator and then press + 4.2% it will automatically change to 31.5 which if you are talking money is $31.50

anonymous · Answer

got it now XD

anonymous · Answer

@shelbygt520  got it thank you :)

anonymous · Answer

no problem it was a pleasure :)