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Answer:
The value of the CD at the end of the 4 years is $5,808.86.
Step-by-step explanation:
Compound interest:
The compound interest formula is given by:
Where A(t) is the amount of money after t years, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per year and t is the time in years for which the money is invested or borrowed.
Howard invested $5,000 in Certificate of Deposit (CD) that pays 3.75% interest.
This means that
Compounded weekly
An year has 52 weeks, so
Then
What is the value of the CD at the end of the 4 years?
This is A(4). So
The value of the CD at the end of the 4 years is $5,808.86.