I believe $1,305
I just did the math and that's what i got.
Tammy Smith Deposits $5000.00 in First Internets Bank 5-year CD which pays 5.22% interest compounded monthly how much interest will she have in the account in 5 years?
3 answers
I got that also but its not correct and its driving me crazy
You used simple interest on a compound interest problem.
i = .0522/12 = .00435
n = 12(5) = 60
amount after 5 years
= 5000(1.00435)^60 = 6487.47
interest earned = 1487.47
i = .0522/12 = .00435
n = 12(5) = 60
amount after 5 years
= 5000(1.00435)^60 = 6487.47
interest earned = 1487.47
1 answer