On melissa's 6th birthday, she gets a $5000 cd that earns 3% interest, compounded semiannually. if the cd matures on her 10th birthday, how much money will be available?

The money available on her 10th birthday is $5627.54

Step-by-step explanation:

Given information:

Principal = $5000

Time = 4 years

Rate of interest = 3%

As we know that the formula for the amount of compound interest

Hence, the money available on her 10th birthday is $5627.54

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Step-by-step explanation:

we know that    

The compound interest formula is equal to  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

substitute in the formula above  

take it another