T On Melissa's 6th birthday, she gets a $2000 CD that earns 5% interest, compounded semiannually. If the
CD matures on her 16th birthday, how much money will be available?
TE
$
(S

9514 1404 393

  $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.

The slope of a line can be used to predict the way the line will be slanted by the value it has. having a large number means that the line rises more than the run so that it is more steep than a line with a lower value of slope.