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The problem shown in the image involves calculating the future value and interest on a Certificate of Deposit (CD) using compound interest. 

### Key Information:
- **Initial Investment (Principal)**: $1900
- **Annual Interest Rate**: 1.47%
- **Compounding Period**: Monthly
- **Investment Duration**: 5 years

We will use the **compound interest formula**:

\[
A = P \left(1 + \frac{r}{n}\right)^{nt}
\]

Where:
- $ A $ is the amount of money accumulated after $ t $ years, including interest.
- $ P $ is the principal amount (initial investment) = $1900.
- $ r $ is the annual interest rate (decimal) = 1.47% or 0.0147.
- $ n $ is the number of times the interest is compounded per year = 12 (monthly).
- $ t $ is the time the money is invested or borrowed for, in years = 5.

Let me calculate it now.### Results:
- **(a)** The total amount in Jim's account after 5 years will be **$2044.82**.
- **(b)** The interest earned on Jim's investment after 5 years is **$144.82**.

Would you like more details on the calculations or have any questions?

Here are 5 related questions for further understanding:
1. How would the future value change if the interest rate increased to 2%?
2. What happens if the interest is compounded quarterly instead of monthly?
3. How would Jim’s balance change if the CD was for 10 years instead of 5?
4. What formula is used for simple interest, and how does it differ from compound interest?
5. How does the frequency of compounding affect the total amount earned?

**Tip**: The more frequently interest is compounded, the higher the amount earned over time.

Jim received a $1900 bonus. He decided to invest it in a 5-year certificate of deposit (CD) with an annual interest rate of 1.47% compounded monthly. How much money is in Jim's account after 5 years, and how much interest is earned?

This problem demonstrates how to calculate compound interest on a $1900 investment in a certificate of deposit (CD) with a 1.47% annual interest rate, compounded monthly for 5 years. Learn step-by-step how to find the total amount and interest earned.

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