Annie is a financially responsible person who keeps a detailed record of the activities in her bank account.

(4 points)

1.1. Annie is considering opening a certificate of deposit (CD) account. The CD account will earn interest. However, it does not allow her to deposit or withdraw money for 2 years.

First Bank is offering a CD account with a 1.8% interest rate each month. The interest is compounded. In other words, the interest earned each month will be based on the total account balance from the previous month. Annie has $500 to start the account.

Question

Annie is a financially responsible person who keeps a detailed record of the activities in her bank account.

 (4 points)



 

 
 
1.1.     Annie is considering opening a certificate of deposit (CD) account. The CD account will earn interest. However, it does not allow her to deposit or withdraw money for 2 years. 

First Bank is offering a CD account with a 1.8% interest rate each month. The interest is compounded. In other words, the interest earned each month will be based on the total account balance from the previous month. Annie has $500 to start the account.