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On Melissa’s 6th birthday, she gets a $5000 CD that earns 5% interest, compounded semiannually. If the CD matures on her 13th birthday, how much money will be available?



Answer :

nahasmilana

Answer: $7100.13 available

Step-by-step explanation:

To calculate the amount of money available when Melissa's $5000 CD matures on her 13th birthday, earning 5% interest compounded semiannually, we can use the formula for compound interest:

A = P ( 1 + r / n) nt

 is A the total amount available

-  is P the principal amount (initial investment), which is $5000

-  is r the annual interest rate in decimal form, which is 5% or 0.05

-  is  n the number of times the interest is compounded per year, which is 2 for semiannual compounding

-  is t the number of years the money is invested for, from Melissa's 6th to 13th birthday, which is 7 years

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