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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 6% that also compounds semi-annually. After six months in the second CD, how much does Dr. Zaius have, in dollars?

 Jun 1, 2021
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First period interest (6 months ) = .04/2    periods = 1

second period (6 months )  = .06/2    periods = 1

 

10000 ( 1+.04/2)1(1+.06/2)1   = 10 506 .00  dollars

 Jun 1, 2021

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