Charley wants to have $950,000 when he retires in a year. if he currently has $900,000 to put in a 1-year cd, which of these aprs and compounding periods will allow him to reach his goal? a. an apr of 5.44% compounded semiannually b. an apr of 5.42% compounded monthly c. an apr of 5.34% compounded daily d. an apr of 5.43% compounded quarterly

Option B - An APR of 5.42% compounded monthly

Step-by-step explanation:

Given : Charley wants to have $950,000 when he retires in a year. If he currently has $900,000 to put in a 1-year CD.

To find : Which of these APRs and compounding periods will allow him to reach his goal?        

Solution :

Using compound interest formula,

Where, A is the amount  A=$950,000

P is the principle P=900,000    

r is the rate r=?

t is the time t= 1 years

Substitute the value,

Option B -  An APR of 5.42% compounded monthly.

When we substitute the value r=5.42%

The nearest amount we get.

Therefore, Option B is correct.

step-by-step explanation:

always plug in x. in this case, x equals 4.

i'm going to first solve 4(2+3x)

1) 4(2+3(4)) use pemdas to solve.

i'm going to multiply whats in the parenthesis first, so 3 times 4=12.

2)4 (2+12) i'm then going to multiply 4 by both numbers in the parenthesis (because multiplying comes before adding)

4 times 2= 8.   4 times 12= 48

4) (8+48)= 56 (answer)

i'm then going to solve 8+12x and plug in 4 for x.

1) 8 +12(4)

multiplying comes before adding, so i'm gonna multiply 12 and 4.

12 times 4= 48.

2) 8+48=56

both equal the same!