Gabriel put $6000 in a 2-year CD at 4% interest, compounded monthly. After 2 years, he withdrew all of his money. How much money did he withdrawal?

Question

anonymous · Answer

Total money = rate * initial investment * time  +  initial investment
T = .04(6000)24 + 6000
T = 240(24) + 6000
T = 5760 + 6000
T = 11760

anonymous · Answer

the answer either has to be 
A. $6244.45
B. $6000.00
C. $6254.41
D. $6498.86

anonymous · Answer

And it's obviously not B.

anonymous · Answer

The answer is D. I used the wrong formula. Total = initial (1 + rate/n)^(n * time). n is 12, because it's compounded monthly. so
T = 6000(1 + .04/12)^(12 * 2)
T = 6000(1.0033)^24
T = 6000(1.083143)
T= 6498.86

anonymous · Answer

Thank you for taking the time to show all the steps! A lot more helpful!