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Mitchell Huntzberger recently sold his holdings in the stock market for $427,635 and is planning to...

Mitchell Huntzberger recently sold his holdings in the stock market for $427,635 and is planning to invest the proceeds in a 3 year bank certificate of deposit with a rate of 4.15%. The amount Mitchell will have when the certificate matures is closest to:

A.

$378,525.74.
B.

$452,958.83.
C.

$483,115.61.

Solutions

Expert Solution

The amount is computed as follows:

Future value = Present value x (1 + r)n

= $ 427,635 x 1.04153

= $ 483,115.61 Approximately

So, the correct answer is option c.

jeff jeffy answered 3 years ago
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