Mitchell Huntzberger recently sold his holdings in the stock market for $516,990 and is planning to...

Mitchell Huntzberger recently sold his holdings in the stock market for $516,990 and is planning to invest the proceeds in a 4-year bank certificate of deposit with a rate of 3.45%. The amount Mitchell will have when the certificate matures is closest to:

	A.	$546,508.11.
	B.	$592,112.35.
	C.	$451,398.55.

Solutions

Expert Solution

Answer:(b)592,112.35

The amount Mitchell will receive can be computed uding the FV function in Excel

The initial deposit=3.45%

The period=4 years

The future value can b computed using the formula =FV(B4,B3,0,-B2) we get future value as $592.112.35

jeff jeffy answered 2 years ago

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