Algebra question

Question

On​ Melissa's 6th​ birthday, she gets a

​$3000

CD that earns

7​%

​interest, compounded

semiannually.

If the CD matures on her

16th

​birthday, how much money will be​ available?

Answer 1

Po= 3K=$3,000

n=2 compounding periods annually

t = 10 years = 16-6

r = .07 = 7% APR

P(t) = Po(1+r/n)^nt

P(10) = 3K(1+.07/2)^(10(2))

= 3000(1.035)^20

= $5,969.37 rounded to nearest cent

it nearly doubles in value (ignoring inflation)