Taylor wants to invest her $7,500 college fund at her bank. She picks an annual certificate...

 

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Taylor wants to invest her $7,500 college fund at her bank. She picks an annual certificate of deposit that will pay her 3% interest each year. She won't need her college money for three more years. (Remember, 3% is 0.03 when written as a decimal.) A. Fill in the table to find out how Taylor's investment grows. Beginning Balance 3% Interest $7,500.00 Year 1 Year 2 Year 3 B. If Taylor chose a statement savings account that compounds quarterly instead, how would her account grow in the first year? 1st quarter 2nd quarter 3rd quarter 4th quarter Beginning Balance $7,500.00 Ending Balance 3% Interest Quarterly statement savings account APY: Ending Balance C. Compare the APY'S Taylor's accounts would earn depending on which account type she chooses. Annual CD APY: Taylor wants to invest her $7,500 college fund at her bank. She picks an annual certificate of deposit that will pay her 3% interest each year. She won't need her college money for three more years. (Remember, 3% is 0.03 when written as a decimal.) A. Fill in the table to find out how Taylor's investment grows. Beginning Balance 3% Interest $7,500.00 Year 1 Year 2 Year 3 B. If Taylor chose a statement savings account that compounds quarterly instead, how would her account grow in the first year? 1st quarter 2nd quarter 3rd quarter 4th quarter Beginning Balance $7,500.00 Ending Balance 3% Interest Quarterly statement savings account APY: Ending Balance C. Compare the APY'S Taylor's accounts would earn depending on which account type she chooses. Annual CD APY:

Answer rating: 100% (QA)

A year Beginning balance interest Ending balance 1 7500 225 7725 2 772... View the full answer