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1.Suppose you have $1,000 and plan to purchase a 10-year certificate of deposit (CD) that pays 1.0% annual interest, compounded monthly . How much
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Question

1.      Suppose you have $1,000 and plan to purchase a 10-year certificate

of deposit (CD) that pays 1.0% annual interest, compounded monthly. How much will you have when the CD matures?
(Hint: To incorporate the compounding effect, you need to convert the annual interest rate into the monthly interest rate, and convert years into months to get correct answer).




how do you set up this equation?

Step-by-step answer

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Subject: Business, Finance

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