If you invest $10,000 in a CD earning 0.25% interest compounded annually, how much will be in the CD after four years?

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To determine the amount in the CD after four years, you can use the formula for compound interest:

[ A = P(1 + r/n)^{nt} ]

Where:

• ( A ) is the amount of money accumulated after n years, including interest.

• ( P ) is the principal amount (the initial amount of money).

• ( r ) is the annual interest rate (decimal).

• ( n ) is the number of times that interest is compounded per year.

• ( t ) is the time the money is invested for in years.

In this case:

• The principal ( P ) is $10,000.

• The annual interest rate ( r ) is 0.25%, which as a decimal is 0.0025.

• Interest is compounded annually, so ( n = 1 ).

• The investment period ( t ) is 4 years.

Plugging these values into the formula gives:

[ A = 10,000(1 + 0.0025/1)^{1*4} ]

[ A = 10,000(1 + 0.0025)^{4} ]

[ A = 10,000(