How Much Money Do You Need to Put in a CD

question 31

Essay

How much money do you need to put in a CD (certificate of deposit) with an interest rate of 7.5% compounded weekly today so that it is worth $5,000 in 3 years?

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Definitions:

Expenses

Outflows of resources or incurring of liabilities from a company's operations, including costs for materials, labor, and overhead required to generate revenue.

GAAP

Generally Accepted Accounting Principles, which are a standardized set of accounting rules, procedures, and conventions for reporting financial information.

IFRS

International Financial Reporting Standards are worldwide guidelines for accounting, utilized in the creation of financial statements.

Depreciation

Apportioning the cost of a tangible asset in a systematic way over its period of usefulness.