Question

Doris put $4000 in a 2-year CD paying 6% interest, compounded monthly. After 2 years, she withdrew all her money. What was the amount of the withdrawal? A. $4000.00 B. $4214.41 C. $4508.64 D. $4448.13

Answer 1

The formula is
A=p (1+r/k)^kt
A amount of the withdrawal?
P present value 4000
R interest rate 0.06
K compounded monthly 12
T time 2 years
A=4,000×(1+0.06÷12)^(12×2)
A=4,508.64

So it's c