Solve the Application Problem

question 52

Multiple Choice

Solve the application problem. If no interest rate is given, assume % interest compounded daily. Round to the nearest
cent.
-Paul Pierce has $7,000 to deposit in a certificate of deposit but is debating whether to leave it there for 2 years or for 3 years. Assume 40% compounded daily in both situations, and find the compound amount in each case.

• A)$7,582.98; $7,892.43
• B)$7,582.98; $7,897.43
• C)$7,592.98; $7,892.43
• D)$7,582.98; $15,784.85

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