Answer:
$1445.11
Step-by-step explanation:
The formula to use would be:
[tex]F=P(1+r)^t[/tex]
Where
F is the future amount (what we want to find)
P is the present (principal) amount (this is 400)
r is the rate of interest, monthly (1.8% or 0.018)
t is the time in months (6 years = 6 * 12 = 72)
Now substituting, we get:
[tex]F=P(1+r)^t\\F=400(1+0.018)^{72}\\F = 400(1.018)^{72}\\F=1445.11[/tex]
After 6 years, the CD will be worth $1445.11
