Acertificateofdepositeispurchasedfor6000andisheldfor7years.IftheCDearns anintersetof8.5%perannum,whatisitsworthattheendof the period?

To calculate the worth of the certificate of deposit at the end of the period, we can use the formula for compound interest, which is:

A = P (1 + r/n) ^ nt

Where: A = the amount of money accumulated after n years, including interest. P = principal amount (the initial amount of money) r = annual interest rate (in decimal) n = number of times that interest is compounded per year t = time the money is invested for in years

In this case: P = $6000 r = 8.5% or 0.085 (in decimal) n = 1 (since it's compounded annually) t = 7 years

Substituting these values into the formula, we get:

A = 6000 (1 + 0.085/1) ^ (1*7) A = 6000 (1.085) ^ 7 A = 6000 * 1.718186 A = $10309.12

So, the certificate of deposit would be worth $10309.12 at the end of the 7 year period.