At maturity,a deposit of $6,000 in certificates of deposit (CD)for 10 years at 3% will be worth: (Select the closest answer)

Question

Quizplus · Accepted Answer

To calculate the future value of the CD, we can use the formula:

FV = PV x (1 + r)^n

where FV is the future value, PV is the present value, r is the interest rate, and n is the number of periods. In this case,

PV = $6,000 
r = 0.03 (since the interest rate is given as a percentage, we need to divide it by 100 to get a decimal) 
n = 10 (since the duration of the CD is 10 years)

Substituting these values, we get:

FV = $6,000 x (1 + 0.03)^10 
FV = $6,000 x 1.344 
FV = $8,064

This is closest to option C) $8,060, so that is the best choice.

At Maturity,a Deposit of $6,000 in Certificates of Deposit (CD)for