Lori buys a $672 certificate of deposit (cd) that earns 7.1% interest that compounds monthly. how much will the cd be worth in 14 years?

The CD will be worth $1810.44 in 14 years.

Step-by-step explanation:

This is a compound interest problem:

The compound interest formula is given by:

Where A is the amount of money, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per unit t and t is the time the money is invested or borrowed for.

In this exercise, we have:

.

There are 12 months in a year, and so, 12 compoundings in a year. So .

We want to know the CD's worth in 14 years. So .

So

The CD will be worth $1810.44 in 14 years.

2 is the final ! : )