Find the Compound Amount for the Certificate of Deposit

question 7

Multiple Choice

Find the compound amount for the certificate of deposit. Assume daily compounding using the following table. Round
to the nearest cent.
-Amount: $4,500
Rate: 3%
Years: 4

• A)$5,228.22
• B)$4,874.78
• C)$5,073.71
• D)$4,637.04

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Definitions:

PST

Provincial Sales Tax; a tax levied by certain provinces in Canada on the sale of goods and services.

Percentage

A percentage is a way of expressing a number as a fraction of 100, used to describe proportions and changes in quantities.

Value

The worth or importance of something, often determined by its utility, scarcity, or demand.

HST

Harmonized Sales Tax, a combined tax that includes both federal and provincial sales taxes, applied in some regions of Canada.