Question

The future value of Elijah's certificate of deposit (CD), for the first five years, is represented by the sequence below. The applied interest is compound interest. $517.50, $535.61, $554.36, $573.76, $593.84, ... A. True B. False

Answer 1

First find the interest rate
R=(535.61/517.50-1)*100=3.5%
517.50 for 4 years
A=517.50(1+0.035)^4
A=593.84

Answer 2

The future value of Elijah's certificate of deposit (CD), for the first five years, is represented by the sequence below. The applied interest is compound interest.

$517.50, $535.61, $554.36, $573.76, $593.84, ..

true