whats the answer?

Question

i put $500 in a cd for 4 years at a fixed interest rate of 4.74%.....how much interest will i gain after the 4 years and how much will i have altogeher?

its not for homework..i actually did open up a cd today but i forgot to ask what id end up with...i work in construction, i shouldnt need to know this...i forgot how to do this in elementary school

also..its compunded quarterly

Answer 1

do your own homework - how do you know people here are going to give the correct answer...

Answer 2

It would depend on how often the interest was paid. Say it was paid only once a year.
You start with $500. After a year you have $523.70. After 2 years you have $548.52 ($523.70 times the interest rate). After 3 years you have $574.51. After 4 years you have $601.74.

Answer 3

You'll gain $104 over 48 months for a total of $604

Answer 4

if itis compounded quarterly the quarterly interetwill be
4.74/4=1.185%
no of quarters in 4 years=16
so n=16;r=1.185%
P=$500
A=P(1+r/100)^n
=500*(1+1.185/100)^16
=500*(1.01185)^16
=$603.71
the interest=A-P=$103.71

Answer 5

101.7557968132488 total interest
601.7557968132488 total money u have

the first reply is wrong! coz the interest is taken from the total of the end of the yr!

so we have:
500*.0474= interest in first yr
interest in first yr +500=money we have @ the end of yr one!

money we have @ the end of yr one*.0474=interest in second yr
and so on ..

Answer 6

$601.76 If it is compounded annually. If not, you must figure out the correct interest rate for the compounded period.

Answer 7

i = prt

i = (500)(0.0474)(4)

i = 94.80

Future value = 500 + 94.80 = 594.80

Answer 8

Actually the correct (exact answer) is $602.83

Answer 9

You should have $601 all together.

Answer 10

If I did everything right it should be $2094.80