Suppose antonio buys a cd for $500 that earns 3% apr and is compounded monthly. the cd matures in 1 year. how much will antonio's cd be worth at maturity?

$515.21

Step-by-step explanation:

Because you're compounding monthly, use the formula:

where A(t) is the amount after the compounding,

P = $500

r = .03 (always in decimal form!)

n = 12 (monthly is every month, and there are 12 months in a year) and

t = time in years

Filling in our given info:

which simplifies to

A(t) = 500(1 + .0025)¹² which simplifies to

A(t) = 500(1.0025)¹² which simplifies to

A(t) = 500(1.030415957) so

A(t) = $515.21

h/o/e/s mad

step-by-step explanation:

si si si

5

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