If you deposit $1,000 into a certificate of deposit that quotes you a 5.5% APY,how much will you have at the end of 1 year?
A)$1,050.00
B)$1,055.00
C)$1,550.00
D)$1,005.50
E)None of the options is correct.

Question

Quizplus · Accepted Answer

To calculate the amount at the end of one year, we need to use the following formula:

Amount = Principal * (1 + APY/100)^n, where n is the number of compounding periods.

In this case, n is 1 since it's a one-year CD. Plugging in the values, we get:

Amount = 1000 * (1 + 5.5/100)^1 = $1,055.00

Therefore, the correct answer is choice B.

If You Deposit $1,000 into a Certificate of Deposit That