The CD will worth in $2729.09 after 10 years.
Solution:
Principal (P) = $1500
Rate of interest (r) = 6%
[tex]$=\frac{6}{100}[/tex]
= 0.06
Time (t) = 10 years
Compounded monthly
Number of times interest applied per time period
n = 12
A = Total amount
Compound interest formula:
[tex]$A=P\left(1+\frac{r}{n}\right)^{n t}[/tex]
[tex]$A=1500\left(1+\frac{0.06}{12}\right)^{12\times 10}[/tex]
[tex]$A=1500\left(\frac{12+0.06}{12}\right)^{120}[/tex]
[tex]$A=1500\left(\frac{12.06}{12}\right)^{120}[/tex]
[tex]A=2729.09[/tex]
The CD will worth in $2729.09 after 10 years.
