Answer:
$ 2463.51 will be available.
Step-by-step explanation:
Since, the amount formula in compound interest,
[tex]A = P(1+\frac{r}{n})^{nt}[/tex]
Where,
P = principal amount,
r = annual interest,
n = number of compounding periods,
t = number of years
We have,
P = $ 2000,
r = 3% = 0.03,
Number of years from 6th birthday to 13th birthday , t = 7 years,
n = 2 ( semiannual in a year ),
Hence, the final amount of CD,
[tex]A=2000(1+\frac{0.03}{2})^{14}[/tex]
[tex]= 2000(1+0.015)^{14}[/tex]
[tex]=2000(1.015)^{14}[/tex]
[tex]\approx \$ 2463.51[/tex]
