Graduation is 4 years away and you want to have $900 available for a trip. If your bank is offering a 4-yearCD (certificate of deposit) paying 3.4% simple interest, how much do you need to put in this CD to have themoney for your trip?

Future value of account earning simple interest is calculated as follows:-FV = A+IwhereFV =future…

Answered: Graduation is 4 years away and you want…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Graduation is 4 years away and you want to have $900 available for a trip. If your bank is offering a 4-year CD (certificate of deposit) paying 3.4% simple interest, how much do you need to put in this CD to have the money for your trip? $