Question

For her 1st birthday Heather's parents invested $5,000.00 in an 13-year certificate for her that pays 7%

compounded every 4 months. How much is the certificate worth on Heather's 14 birthday?
It is worth $
Answer pls

Answer 1

[AI-generated answer — Explain Bot]

To calculate the worth of the certificate on Heather's 14th birthday, we need to use the formula for compound interest:

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

Where:
A stands for the final amount
P is the principal amount (initial investment), which is $5,000.00
r is the annual interest rate in decimal form, which is 7% or 0.07
n is the number of times the interest is compounded per year, which is every 4 months or 3 times a year
t is the number of years, which is 14 years

Plugging in these values into the formula:

A = 5000(1 + 0.07/3)^(3*14)

Now, let's calculate the value of the certificate on Heather's 14th birthday.