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    ga2000's Avatar
    ga2000 Posts: 1, Reputation: 1
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    #1

    Mar 5, 2009, 06:47 PM
    Compounded ?
    Suppose you have $2,000 and plan to purchase a 3-year certificate of deposit (CD) that pays 4% interest, compounded annually. How much will you have when the CD matures
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Mar 7, 2009, 09:38 AM

    You need to use a Future Value of $1 table to get the interest factor. The interest factor will be at 3 periods @ 4% interest. Take this number * your $2,000 to get your answer.

    This table is in accounting textbooks as well as in a finance textbook.
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