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Popular Word Problems >

How much interest is earned on a 1,500 CD if it is invested at 8.25% for 4 years and is compounded daily?

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Solution

Howmuchinterestisearnedona1,500CDifitisinvestedat8.25%for4yearsandiscompoundeddaily?

Solution

Interest:586.37
Solution steps
Translate the problem into an equation:2086.37439…=1500+I
Solve for I,2086.37439…=1500+I:I=586.37
Interest:586.37

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