Howard invested $5,000 in Certificate of Deposit (CD) that pays 3.75% interest. compounded weekly. What is the value of the CD at the end of the 4 years?

The value of the CD at the end of the 4 years is $5,808.86.

Step-by-step explanation:

Compound interest:

The compound interest formula is given by:

Where A(t) is the amount of money after t years, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per year and t is the time in years for which the money is invested or borrowed.

Howard invested $5,000 in Certificate of Deposit (CD) that pays 3.75% interest.

This means that

Compounded weekly

An year has 52 weeks, so

Then

What is the value of the CD at the end of the 4 years?

This is A(4). So

The value of the CD at the end of the 4 years is $5,808.86.