To find out the worth of the certificate of deposit at the end of the period, we need to calculate the compound interest.

Here's the step-by-step calculation:

1. Identify the principal amount, the rate of interest, and the time period. In this case, the principal (P) is GHS 6000, the rate of interest (r) is 8% or 0.08 (in decimal form), and the time (t) is 7 years.

2. Use the formula for compound interest, which is A = P(1 + r/n)^(nt). In this case, since the interest is likely compounded annually, n would be 1.

3. Substitute the values into the formula: A = 6000(1 + 0.08/1)^(1*7).

4. Simplify the equation: A = 6000(1 + 0.08)^7.

5. Calculate the value: A = 6000(1.08)^7.

6. The final value, A, is approximately GHS 9,753.87.

So, the certificate of deposit is worth approximately GHS 9,753.87 at the end of the seven-year period.

Question

To find out the worth of the certificate of deposit at the end of the period, we need to calculate the compound interest.

Here's the step-by-step calculation:

1. Identify the principal amount, the rate of interest, and the time period. In this case, the principal (P) is GHS 6000, the rate of interest (r) is 8% or 0.08 (in decimal form), and the time (t) is 7 years.

2. Use the formula for compound interest, which is A = P(1 + r/n)^(nt). In this case, since the interest is likely compounded annually, n would be 1.

3. Substitute the values into the formula: A = 6000(1 + 0.08/1)^(1*7).

4. Simplify the equation: A = 6000(1 + 0.08)^7.

5. Calculate the value: A = 6000(1.08)^7.

6. The final value, A, is approximately GHS 9,753.87.

So, the certificate of deposit is worth approximately GHS 9,753.87 at the end of the seven-year period.

Knowee AI · Accepted Answer

To find out the worth of the certificate of deposit at the end of the period, we need to calculate the compound interest.

Here's the step-by-step calculation:

1. Identify the principal amount, the rate of interest, and the time period. In this case, the principal (P) is GHS 6000, the rate of interest (r) is 8% or 0.08 (in decimal form), and the time (t) is 7 years.

2. Use the formula for compound interest, which is A = P(1 + r/n)^(nt). In this case, since the interest is likely compounded annually, n would be 1.

3. Substitute the values into the formula: A = 6000(1 + 0.08/1)^(1*7).

4. Simplify the equation: A = 6000(1 + 0.08)^7.

5. Calculate the value: A = 6000(1.08)^7.

6. The final value, A, is approximately GHS 9,753.87.

So, the certificate of deposit is worth approximately GHS 9,753.87 at the end of the seven-year period.

.AcertificateofdepositispurchasedforGHS6000andisheldforsevenyears.Ifthe certificateearnsaninterestof8%,whatisitworthattheendoftheperiod?

Question

A certificate of deposit is purchased for GHS 6000 and is held for seven years. If the certificate earns an interest of 8%, what is it worth at the end of the period?

Solution

Similar Questions

Upgrade your grade with Knowee