A recent high school graduate received $700 in gifts of cash from friends and relatives. In addition, he received three scholarships in the amounts of $350, $400, and $1200. If he takes all his gift and scholarship money and invests it in a 36-month CD paying 2% interest compounded daily (use nequals360), how much will the graduate have when he cashes in the CD at the end of the 36-months?

$ 2813.86

Explanation:

PV ( present value) = $ 700 + $ 350 + $ 400 + $ 1200 = $ 2650

n = 360

t in years = 36 months / 12 months = 3

Fv ( future value ) = PV ( 1 + ( r/360) ^ (nt) = 2650 ( 1 + ( 0.02/360))^(3×360) = $ 2813.86

he will have $ 2813.86 at the end of the 36 months

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