The cost of a cd after 6 year is =$ 15.12
Step-by-step explanation:
The present cost of the cd is $11.95 and inflation rate 4%
P = $11.95 , r = 4% and n = 6 years
The cost of a cd after 6 year is =[tex]P (1+\frac{r}{100})^n[/tex]
=$ [tex]11.95(1+\frac{4}{100})^6[/tex]
=$ 15.12
