Answer:
C. $328.14
Step-by-step explanation:
We have been given that you bought a CD for $300 that earns 3% APR and is compounded quarterly. The CD matures in 3 years.
To find the value of CD at maturity, we will use compound interest formula.
\(A=P(1+\frac{r}{n})^{n\cdot t}\), where,
A = Final amount after t years,
P = Principal amount,
r = Annual interest rate in decimal form,
n = Number of times interest in compounded per year.
t = Time in years.
\(3\%=\frac{3}{100}=0.03\)
Substitute the given values:
\(A=300(1+\frac{0.03}{4})^{4\cdot 3}\)
\(A=300(1+0.0075)^{12}\)
\(A=300(1.0075)^{12}\)
\(A=300*1.0938068976709831\)
\(A=328.14206930129493\)
\(A\approx 328.14\)
Therefore, the CD will be worth $328.14 at maturity.
