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6.4 Exercise 3

Avg difficulty 2.5

Abena invested $1,000 in a CD that earned 4% compounded annually, and the CD was worth $1,124.86 after 3 years. Had Abena invested in a CD with simple interest, how much would the CD have been worth after 3 years? How much more did Abena earn using compound interest?

OpenStax Contemporary Mathematics, 6.4 Compound Interest, exercise 3

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Adapted from Contemporary Mathematics © 2023 Rice University. Licensed under CC BY 4.0. Source: Contemporary Mathematics. Imported at revision fa7c1a1.