A bank is paying 7.5% APR on a CD. (Note: The convention when there are no...

A bank is paying 7.5% APR on a CD. (Note: The convention when there are no periodic payments is to assume annual compounding, unless stated otherwise. Thus this is annual compounding.) If you put $2,905 into an account, how much will the account be worth in 5 years? Answer to 2 decimal places.

Expert Solution

The account's worth is calculated using the FV function as follows:_

=FV(rate,nper,pmt,pv)

=FV(7.5%,5,,-2905)

=4170.50

jeff jeffy answered 2 years ago

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