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

Question

2 years ago

8

, how much money will be available?

1 answer:

amid [387] · Answer 1 · 2022-12-05T12:43:11+03:00

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

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