PRINTER VERSION BACK NEXT Problem 51 Ted Rogers is investing

PRINTER VERSION BACK NEXT Problem 5.1 Ted Rogers is investing $12,000 in a bank CD that pays a 9 percent annual interest. How much will the CD be worth at the end of five years? (If you solve this problem with algebra round intermediate ations to 4 decimal places, in all cases round your final ansver to the nearest penny.) Value of CD after 5 Years Click if you would like to Show Work for this question: Open Show Work

Solution

Value of CD after 5 years = Investment x Future Value of investment of 1 = $       12,000 x      1.5386 = $ 18,463.20 Working: Future value of investment of 1 = (1+i)^n Where, = (1+0.09)^5 i 9% =           1.5386 n 5