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morpeh [17]
2 years ago
8

On​ Melissa's 6th​ birthday, she gets a ​$5000 CD that earns ​3% ​interest, compounded . If the CD matures on her 10th ​birthday

, how much money will be​ available?
Mathematics
1 answer:
amid [387]2 years ago
3 0

Answer:

$5,632.45

Step-by-step explanation:

Assuming it is compounded semiannually, A(t) = P(1 + (r/n))^(n*t)

A(4) = 5000*(1 + (0.03/2))^(2*4)

A(4) = 5,000*(1.015)^8

A(4) = 5,000*1.12649

A(4) = $5,632.45

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