contestada

Calculate the amount at maturity for a $3,000
certificate of deposit with an interest period of
one year and an APR of 8.75% compounded
quarterly

Respuesta :

opudodennis

Answer:

$3,271.24

Step-by-step explanation:

-Given an APR of 8.75%(compounded quarterly), the annual effective rate is calculated as:

[tex]i_m={1+APR/m)^m-1\\\\=(1+0.0875/4)^4-1\\\\=0.090413[/tex]

#Having determined the effective annual rate, we determine the maturity amount as:

[tex]A=P(1+i_m)^n, n=1, P=3000, i_m=0.090413\\\\=3000(1+0.090413)^1\\\\=3271.24[/tex]

Hence, the amount at maturity is $3,271.24

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