QuestionOn Melissa's 6th birthday, she gets a $\$ 5000 \mathrm{CD}$ that earns $4 \%$ interest, compounded semiannually. If the CD matures on her 14th birthday, how much money will be available?
The amount available will be \$$\square$ (Simplify your answer. Round to the nearest cent.)

Studdy Solution
Simplify and round the final answer to the nearest cent.
Calculate the expression:
$$A = 5000 \times (1.02)^{16}$$
Using a calculator:
$$A \approx 5000 \times 1.3728$$
$$A \approx 6864.00$$
The amount available when the CD matures is:
\$ \boxed{6864.00}