Answer: Amount that Jenna have in all is $1438.71.
Step-by-step explanation:
Since we have given that
Amount Jenna inherits from her grandparents(P)= $1300
Rate of interest she is going to receive on investing in a cd is given by
(r)=5.2%
Number of years (n) is given by
[tex]2\frac{1}{2}\\\\=\frac{5}{2}[/tex]
As we know the formula for "Compound interest ":
[tex]A=P(1+\frac{r}{100})^n\\\\A=1300(1+0.052)^2\\\\A=1300(1.052)^2\\\\A=\$1438.71[/tex]
Hence, Amount that Jenna have in all is $1438.71.
