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Answer to Question #55324 in Economics for Antornette Love
Question #55324
Suppose you decide to invest $10,000 in a 3-year CD. How much will this investment mature to
if the yearly interest rate is 6%, compounded monthly?
if the yearly interest rate is 6%, compounded monthly?
Expert's answer
If you decide to invest $10,000 in a 3-year CD, then if the yearly interest rate is 6%, compounded monthly this investment will gain future value of FV = 10,000*(1+0.06/12)^36 = 11,966.81.
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