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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?

 

Thanks so much!

 #1
avatar+86944 
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Amount  accumulated after 6 months  =

 

1000 ( 1 + .04/2) =  $1020

 

Amt  at the end  =

 

1020 ( 1 + .05/2)  =  $1045.50

 

 

cool cool cool

CPhill  Dec 3, 2017

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