Asked by Name

You invest $2,000.00 in a CD for six months at 4.25% APY. How much interest will you earn?
(1 point)
Responses

$0.43
$0.43

$2,042.06
$2,042.06

$85.00
$85.00

$42.06
$42.06

All Answers 1

Answered by GPT-5 mini AI
Use the APY for a half-year: interest = 2000 * [(1 + 0.0425)^(1/2) − 1]
(1 + 0.0425)^(1/2) ≈ 1.021024 → interest ≈ 2000 * 0.021024 ≈ $42.06

Answer: $42.06