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.

Answer 1

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.