Question 866943: On Melissa's 6th birthday, she gets a $6000 CD that earns 6%intrest, compounded semiannually. If the CD matures on her 16th birthday, how much money will be available ? ((Please explain the steps so I can follow and learn :) ))
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! On Melissa's 6th birthday, she gets a $6000 CD that earns 6%intrest, compounded semiannually. If the CD matures on her 16th birthday, how much money will be available ?
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A(t) = P(1 + (r/n))^(n*t)
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A(10) = 6000(1 + (0.06/2))^(2*10)
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A(10) = 6000(1.03)^20
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A(10) = 6000*1.8061
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A(10) = $10,836.67
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Cheers,
Stan H.
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