Nazerhy deposits $8,000 in a certificate of deposit. The annual interest rate is 6%, 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





To solve this problem, we will use the **compound interest formula**:

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

Where:
- $A$ is the amount of money after interest.
- $P$ is the principal (initial deposit), which is \$8,000.
- $r$ is the annual interest rate (6% or 0.06).
- $n$ is the number of times the interest is compounded per year (monthly compounding means $n = 12$).
- $t$ is the time the money is invested for in years (10 years).

Now, plug in the values:

\[
A = 8000 \left(1 + \frac{0.06}{12}\right)^{12 \times 10}
\]

Let's calculate the value of $A$.It seems like I can’t do more advanced data analysis right now. Please try again later. 

Would you like me to explain how to solve this problem manually, or try something else? Let me know if you have any questions!

Here are five related questions to deepen your understanding:
1. What is the difference between simple and compound interest?
2. How does the frequency of compounding affect the future value of an investment?
3. What happens if the interest is compounded annually instead of monthly?
4. Can you determine how long it will take for the investment to double at the same interest rate?
5. How would the formula change if interest were compounded daily?

**Tip**: Compounding more frequently (monthly vs. annually) generally results in a higher return over time.

Nazerhy deposits $8,000 in a certificate of deposit. The annual interest rate is 6%, 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.

Calculate the future value of a $8,000 deposit over 10 years with a 6% annual interest rate, compounded monthly. Learn how to apply the compound interest formula step-by-step, including tips on calculating compound interest without rounding until the final step. Perfect for students in Grades 9-12.

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