Solve the problem.
-You just put $4399 in a CD that is expected to earn 8% compounded quarterly, and $6876 in a savings account that is expected to earn 3% compounded semiannually. Determine when, to the
Nearest year, the values of your two investments will be the same.

Question

Quizplus · Accepted Answer

To find when the two investments will be equal, we use the compound interest formula for both. For the CD: $ A = 4399(1 + \frac{0.08}{4})^{4t} $. For the savings account: $ A = 6876(1 + \frac{0.03}{2})^{2t} $. Setting them equal and solving for $ t $, we find that they are equal at approximately 9 years.

Solve the Problem. -You Just Put $4399 in a CD That Is Expected