You invested $5,000 into a certificate of deposit (CD) today and agreed to leave it in the CD for the next 5 years. The CD pays a 6% annual interest rate, compounded semi-annually. What is the value of the CD at the end of 5 years? $8,954.24 $6,391.13 $28,185.46 $6,719.58

You invested $5,000 into a certificate of deposit (CD) today and agreed to leave it in the CD for the next 5 years. The CD pays a 6% annual interest rate, compounded semi-annually. What is the value of the CD at the end of 5 years? $8,954.24 $6,391.13 $28,185.46 $6,719.58

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 26P

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Question

You invested $5,000 into a certificate of deposit (CD) today and agreed to leave it in the CD for the next 5 years. The CD pays a 6% annual interest rate, compounded semi-annually.

What is the value of the CD at the end of 5 years?

$8,954.24

$6,391.13

$28,185.46

$6,719.58

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