Solve the Application Problem

Multiple Choice

Solve the application problem. If no interest rate is given, assume % interest compounded daily. Round to the nearest
cent.
-Paul Pierce has $7,000 to deposit in a certificate of deposit but is debating whether to leave it there for 2 years or for 3 years. Assume 40% compounded daily in both situations, and find the compound amount in each case.

A) $7,582.98; $7,892.43
B) $7,582.98; $7,897.43
C) $7,592.98; $7,892.43
D) $7,582.98; $15,784.85