After investing $10,000 in a 5-year CD at a return of 4% compounded quarterly, how much will Randy have at the end of 5 years?

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Multiple Choice

After investing $10,000 in a 5-year CD at a return of 4% compounded quarterly, how much will Randy have at the end of 5 years?

Explanation:
To find out how much Randy will have at the end of 5 years from an investment of $10,000 in a certificate of deposit (CD) with a return of 4% compounded quarterly, we can use the compound interest formula: \[ A = P \left(1 + \frac{r}{n}\right)^{nt} \] Where: - \( A \) = the amount of money accumulated after n years, including interest. - \( P \) = the principal amount (the initial amount of money, which is $10,000). - \( r \) = annual interest rate (decimal) (4% or 0.04). - \( n \) = number of times that interest is compounded per year (quarterly, so 4 times). - \( t \) = the number of years the money is invested (5 years). Plugging in the values: 1. The principal (P) is $10,000. 2. The annual interest rate (r) is 0.04. 3. The number of times interest is compounded per year (n) is 4. 4. The investment duration (t) is 5 years. Now, calculate the accumulated amount (

To find out how much Randy will have at the end of 5 years from an investment of $10,000 in a certificate of deposit (CD) with a return of 4% compounded quarterly, we can use the compound interest formula:

[ A = P \left(1 + \frac{r}{n}\right)^{nt} ]

Where:

  • ( A ) = the amount of money accumulated after n years, including interest.

  • ( P ) = the principal amount (the initial amount of money, which is $10,000).

  • ( r ) = annual interest rate (decimal) (4% or 0.04).

  • ( n ) = number of times that interest is compounded per year (quarterly, so 4 times).

  • ( t ) = the number of years the money is invested (5 years).

Plugging in the values:

  1. The principal (P) is $10,000.

  2. The annual interest rate (r) is 0.04.

  3. The number of times interest is compounded per year (n) is 4.

  4. The investment duration (t) is 5 years.

Now, calculate the accumulated amount (

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