QUESTION 3Suppose you deposit $2.500 in a CD paying 8% interest, compounded every other month. How much will you have in the account after15 years? Round your answer to the nearest cent.below is an example how to do problemmple 4A certificate of deposit (CD) is a savings instrument that many banks offer. It usually gives ahigher interest rate, but you cannot access your investment for a specified length of ime.Suppose you deposit $3000 in a CD paying 6% interest, compounded monthly. How muchwill you have in the accbunt after 20 years?In this example,Pa-$30001=0.06-12the initial deposit6% annual rate12 months in 1 yearsince we're looking for how much well have after 20N=20years0.06So P 3000 1+123D%2993061(round your answer to the nearest penny)%3DLet us compare the amount of money earned from compounding against the amount youwould carn from simple interestYarsSimple Interest6% compounded(S15 per month)monthly 0.5%each month33900$4800$5700$4046 55$5458.19$7362 2859930 61$13394 917500these are not answers$8,267.35$8,267.30$3,333.60$3,333.62$6,508.70$6.508.72$6,508.50

Time value of money (TVM) is used to measure the value of money at different point of time in the…

Answered: QUESTION 3 Suppose you deposit $2,500…

QUESTION 3 Suppose you deposit $2,500 in a CD paying 8% interest, compounded every other month. How much will you have in the account after 15 years? Round your answer to the nearest cent.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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