Question

Oliver plans to purchase a $1,500 certificate of deposit (CD) at his bank. The CD will earn 2.3% interest, compounded semi-annually.

Write an exponential expression in the form a(b)c, where b is a single value, to find the value of the CD, in dollars, after t years. Round any decimals to the nearest ten-thousandth. Do not include dollar signs or percent symbols in the expression.

Answer 1

Answer:

  1500(1.0115)^(2t)

Step-by-step explanation:

The formula for the balance in an account earning compound interest is ...

  A = P(1 +r/n)^(nt)

where P is the principal invested, r is the annual rate, n is the number of times per year interest is compounded, and t is the number of years.

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Using the given values in the formula, we have ...

  A = 1500(1 +0.023/2)^(2t)

Simplifying a bit, this is ...

  A = 1500(1.0115)^(2t) . . . . . CD value after t years