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Suppose you have $1,000 and plan to purchase a 10-year certificate of deposit (CD) that pays 1.0% annual interest, compounded daily . 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 daily. 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 daily interest rate, and convert years into days to get correct answer).

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