Question
After saving $250, Li invests in a certificate of deposit (CD) that pays 2.6% annual interest. What will be the value of Li’s CD after she has had it for one year? Show your work.
Answers
GPT 3.5
To calculate the value of Li's CD after one year, we need to calculate the interest earned and add it to the principal amount.
Interest earned = Principal amount x Interest rate = $250 x 2.6% = $6.50
Value of the CD after one year = Principal amount + Interest earned = $250 + $6.50 = $256.50
Therefore, the value of Li's CD after one year would be $256.50.
Interest earned = Principal amount x Interest rate = $250 x 2.6% = $6.50
Value of the CD after one year = Principal amount + Interest earned = $250 + $6.50 = $256.50
Therefore, the value of Li's CD after one year would be $256.50.