9514 1404 393
Answer:
$3277.23
Step-by-step explanation:
The future value of the CD with interest at rate r compounded semiannually for t years will be given by ...
A = P(1 +r/2)^(2t)
where P is the principal value.
For the given rate and time, this is ...
A = $2000(1 +0.05/2)^(2·10) = $2000(1.025^20) ≈ $3277.23
The value of the CD at maturity will be $3277.23.
