Dr. Zaius invests $10,000 in a CD with an annual interest rate of 4% that compounds semi-annually (twice a year). After six months, he rolls over the CD into another CD with an annual interest rate of 5% that also compounds semi-annually. After six months in the second CD, how much does Dr. Zaius have, in dollars?
+37157 interest for first 6 months then moves to second 6 month interest
10000 (1 + .02)
[ 10000 (1 + .02)] (1 + .025) = $.............. note that Doc only gets 1/2 of the annual interest for each 6 month deposit
