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Future value​ (with changing​ years). Dixie Bank offers a certificate of deposit with an option to select your own investment period. Jonathan has ​$8 comma 000 for his CD investment. If the bank is offering a 3​% interest​ rate, compounded​ annually, how much will the CD be worth at maturity if Jonathan picks a a. three​-year investment​ period? b. five​-year investment​ period? c. eight​-year investment​ period? d. twenty​-year investment​ period? a. How much will the ​$8 comma 000 CD investment at 3​% interest rate be worth at maturity if Jonathan picks a 3​-year investment​ period?

Respuesta :

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Answer:

A) FV=  $8714.816

B) FV= $9274.193

C) FV=  $10134.16

D) FV= $14449

Explanation:

Giving the following information:

Jonathan has ​$8000 for his investment.

The bank is offering a 3​% interest​ rate, compounded​ annually.

To calculate the ending value if the investment, we need to use the Final Value formula.

FV= Present value* (1+interest rate)^number of years

FV= PV*(1+i)^n

A) FV= 8000*(1,03)^3= $8714.816

B) FV= 8000*(1,03)^5= $9274.193

C) FV= 8000*(1,03)^8= $10134.16

D) FV= 8000*(1.03)^20= $14449

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