You deposit $5,000 into a 10-year bank CD that pays a 6.5 percent annual compound interest rate.
When the CD matures in 10 years, you will get more than $9,000 from it.

Question

Quizplus · Accepted Answer

Using the compound interest formula A=P(1+r/n)^nt, where A is the final amount, P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years, we can calculate that after 10 years, the CD will be worth $9,978.14.

You Deposit $5,000 into a 10-Year Bank CD That Pays