Answer:
Amount 10,841.08
Explanation:
To know the value of the certificate of deposit in three-years we will use the compounding interest formula:
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
Principal $9,500.00
time = 3 years
rate = 4.5% = 4.5/100 = 0.045
[tex]9500 \: (1+ 0.045)^{3} = Amount[/tex]
Amount 10,841.08
The CD investment of Jonathan will return 10,841.08 in 3 years at the Dixie Bank rate.
