An individual invests $2,000 in a one year Certificate of Deposit paying interest at a rate of 1.25%.

An individual invests $2,000 in a one year Certificate of Deposit paying interest at a rate of 1.25%. How much will the individual have after one year?

A. $2,000

B. $2,250

C. $2,025

Solutions

Expert Solution

Ans C. $2,025

FV =	Future Value
PV =	Present Value
r =	rate of interest
n=	no of period


FV =	PV (1 + r )^n
FV =	2000*(1+ 1.25%)^1
FV =	2025.00

jeff jeffy answered 1 year ago

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