Answer:
$431.11
Step-by-step explanation:
To find how much the CD of Maurice will be after 3 years, we need to use the formula:
[tex]A=P(1+\dfrac{r}{n})^{nt}[/tex]
Now let's find all of our available variables.
P = $400
r = 2.5% or 0.025
t = 3 years
n = 12 months (Compounds monthly)
Now we can use the formula by substituting our values.
[tex]A=P(1+\dfrac{r}{n})^{nt}[/tex]
[tex]A=400(1+\dfrac{0.025}{12})^{12(3)}[/tex]
[tex]A=400(1+0.002083)^{36}[/tex]
[tex]A=400(1.002083)^{36}[/tex]
[tex]A=400(1.077787)[/tex]
[tex]A=431.11[/tex]
The CD of Maurice will be $431.11 after 3 years.
