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1.Suppose you have $1,000 and plan to purchase a 10-year certificate of deposit (CD) that pays 1.0% annual interest, compounded quarterly . How much will

1.Suppose you have $1,000 and plan to purchase a 10-year certificate of deposit (CD) that pays 1.0% annual interest, compounded quarterly. How much will you have when the CD matures?

(Hint: To incorporate the compounding effect, you need to convert the annual interest rate into the quarterly interest rate, and convert years into quarters to get correct answer).

how do you set up this equation ?

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