Find the compound amount for the certificate of deposit. Assume daily compounding using the following table. Round
to the nearest cent.
-Amount: $9,100
Rate: 2%
Years: 5
A)$9,662.70
B)$12,283.56
C)$10,057.03
D)$11,114.70

Question

Find the compound amount for the certificate of deposit. Assume daily compounding using the following table. Round
to the nearest cent. 
-Amount: $9,100
Rate: 2%
Years: 5
A)$9,662.70 
B)$12,283.56 
C)$10,057.03 
D)$11,114.70

Quizplus · Accepted Answer

Using the formula for compound interest A=P(1+r/n)^(nt), where P=principal, r=rate, n=number of times compounded per year, and t=time in years:

A = 9100(1+0.02/365)^(365*5)
A = $10,056.76

Rounding to the nearest cent, the compound amount is $10,057.03, which corresponds to choice C. Using the formula A=P(1+r/n)^(nt) where P=$9,100, r=0.02, n=365 (since daily compounding), and t=5 years, we get A=$10,057.03. Therefore, the answer is C.

Find the Compound Amount for the Certificate of Deposit