Posted by **Anonymous** on Sunday, April 3, 2011 at 11:34am.

You invest $1,000 in a certificate of deposit that matures after 10 years and pays 5 percent interest, which is compounded annually until the certificate matures.

a) How much interest will the saver earn if the interest is left to accumulate?

b) How much interest will the saver earn if the interest is withdrawn each year?

c) Why are the answers to a and b different

## Answer This Question

## Related Questions

- MATH - Mabel has $35,000 to invest in a certificate of deposit for 4 years. The ...
- Math - Using the formula. I =Prt ,calculate the simple interest where t=1/n and ...
- Business - Envision you have served as business manager for over two years. you ...
- Math - I really need some help with this one. Envision that you have served as ...
- Math - Envision that you have served as business manager of Media World for over...
- Math - Can someone steer me in the right direction? Here's the question. ...
- Math - Envision that you have served as business manager of Media World for ...
- math - at the end of every 3 months, Rita deposits $100 into an account that ...
- math - Ronelio invests $29,000 in two one-year certificates of deposit. One ...
- algebra interest word problem - Erin Grabish recevied $2,000 for speaking at a ...

More Related Questions