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
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