Answer:
Explanation:
To calculate the balance after 2 years on a Certificate of Deposit (CD) with an initial investment of $1,500.00 and a 1.5% interest rate, you can use the formula for compound interest:
\[A = P(1 + r/n)^(nt)\]
Where:
- A is the future balance.
- P is the principal amount (initial investment).
- r is the annual interest rate (as a decimal).
- n is the number of times that interest is compounded per year.
- t is the number of years.
In this case:
- P = $1,500.00
- r = 1.5% = 0.015 (as a decimal)
- n = 1 (assuming interest is compounded annually)
- t = 2 years
Plugging these values into the formula:
\[A = 1,500(1 + 0.015/1)^(1*2)\]
\[A = 1,500(1.015)^2\]
Now, calculate the future balance:
\[A = 1,500(1.030225)\]
\[A = $1,545.34\]
So, the balance after 2 years on the CD with an initial investment of $1,500.00 and a 1.5% interest rate is approximately $1,545.34 (rounded to the nearest hundredth).