whats the answer

Question

A=p(1+% in decimal form/compounded)nt

 

 

 

A recent high school graduate received $800 in gifts of cash from friends and relatives. In addition, he received three scholarships in the amounts of $450, $600, and $1300. If he takes all his gift and scholarship money and invests it in a 24-month CD paying 3% interest compounded daily (use nequals360), how much will the graduate have when he cashes in the CD at the end of the 24-months?

 

Answer 1

The actual equation is A=P(1+(I/C))^CT

where A is the final value, P the initial value, I the interest rate, C the frequency in which interest is compounded and T the number of time units overall using the same units as those used for I. So, in this case

 

A=(800+450+600+1300)(1+(0.03/360))^(360*2)