kyle has $900 in cash received for high school graduation gifts from various relatives. he wants to invest it in a certificate of deposit (cd) so that he will have a down payment on a car when he graduates from college in five years. his bank will pay 4% per year, compounded annually, for the five-year cd. how much will kyle have in five years to put down on his car? in five years, the amount kyle will have to put down in his car is $__

Given that Kyle has received 900$ in cash as a gift and Kyle wants to invest that money in CD with 4% compound interest which is being compounded annually.

That means interest rate = 4% = in decimals.

Since interest is compounded annually, we have to use compound interest formula.

That is amount after time t is

Where P- initial amount = 900

           r= rate of interest in decimals = 0.04

           n= number of times interest is compounded per year = 1

           t= number of years the money is invested = 5

Hence A =

                                                                     = $1094.9876

So, at the end of five year period, Kyle will have 1094.9876$ to put down in his car.

answer: no

step-by-step explanation:

you are only given the cost not the amount of pounds.

what do u need to know

step-by-step explanation: