aidahamideh
contestada

HURRY HELP
Tammy sold a diamond ring for $10,000. She placed the money into a CD with a 3.9% interest rate compounded
annually. What is the interest earned on the amount after 4 years?
a.)$1653.66
b.)$1984.87
c.)$1492.04
d.)$1119.99

Respuesta :

Answer: Choice (a)  $1,653.66

=====================================================

Work Shown:

Use the compound interest formula

A = P*(1+r/n)^(n*t)

A = 10000(1+0.039/1)^(1*4)

A = 11,653.65589441

A = 11,653.66

That's the amount of money Tammy will have at the end of 4 years.

Subtract off the principal from this value to get the interest.

interest = A - P

interest = 11,653.66 - 10,000

interest = 1,653.66

Otras preguntas