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Rachel invests $6,500 into a 5-year CD. The interest rate is 4.2% and is compounded semi-annually. How much will she have in her account at the end of the 5 years?​

Rachel invests 6500 into a 5year CD The interest rate is 42 and is compounded semiannually How much will she have in her account at the end of the 5 years class=

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[tex]~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$6500\\ r=rate\to 4.2\%\to \frac{4.2}{100}\dotfill &0.042\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{semi-annually, thus twice} \end{array}\dotfill &2\\ t=years\dotfill &5 \end{cases} \\\\\\ A=6500\left(1+\frac{0.042}{2}\right)^{2\cdot 5}\implies A=6500(1.021)^{10}\implies A\approx 8001.49[/tex]