Math Problem Statement

Tara deposits $5,000 in a certificate of deposit. The annual interest rate is 7%, and the interest will be compounded monthly. How much will the certificate be worth in 10 years? Round your answer to the nearest cent. Do NOT round until you calculate the final answer

Solution

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Math Problem Analysis

Mathematical Concepts

Compound Interest
Exponential Growth

Formulas

A = P(1 + r/n)^(nt)

Theorems

Compound Interest Formula

Suitable Grade Level

Grades 9-12