How much money will earl receive from the cd

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Reference no: EM132067164

Question: The day Earl was born; his Dad bought a winning scratch-off lottery ticket. After taxes, he received $2345. Being a wise man, Earl's dad realized that with all the financial demands of raising a child, that he most likely would not be able to deposit money regularly into a savings account for his son's future. So he decided to take his winnings and buy a 20 year CD for his son. Locking the money into a CD would allow Earl's dad to get a higher interest rate than a regular savings account. The CD will earn 7.5% compounded per annum. In 20 years, how much money will Earl receive from the CD? "

Reference no: EM132067164

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