Dixie Bank offers a certificate of deposit with an option to select your own investment period. Jonathan has ​$8,000 for his CD investment. If the bank is offering a 5.5​% interest​ rate, compounded​ annually, how much will the CD be worth at maturity if Jonathan picks a   a. three​-year investment​ period?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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 Dixie Bank offers a certificate of deposit with an option to select your own investment period. Jonathan has
​$8,000
for his CD investment. If the bank is offering a
5.5​%
interest​ rate, compounded​ annually, how much will the CD be worth at maturity if Jonathan picks a
 
a.
three​-year
investment​ period?
b.  
six​-year
investment​ period?
c.  
eight​-year
investment​ period?
d.  
twenty​-year
investment​ period?
 
 
 
a. How much will the
​$8,000
CD investment at
5.5​%
interest rate be worth at maturity if Jonathan picks a
3​-year
investment​ period?
 
​$nothing  
​(Round to the nearest​ cent.)
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