A CD, or "certificate of deposit," is a type of savings account with a fixed rate and term, meaning you can only redeem it when the term is over. If you bpen a CD with an initial deposit of \( \$ 1500 \) and an APR of \( 0.15 \% \) compounded monthly, what profit will you have earned when you redeem the CD in 5 years? Round your answer to the nearest cent, if necessary.

To calculate the profit earned on a certificate of deposit (CD), we can use the formula for compound interest: \[ A = P \left(1 + \frac{r}{n}\right)^{nt} \] Where: - \( A \) is the amount of money accumulated after n years, including interest, - \( P \) is the principal amount (the initial deposit), - \( r \) is the annual interest rate (decimal), - \( n \) is the number of times that interest is compounded per year, - \( t \) is the time the money is invested for in years. In this case: - \( P = 1500 \) - \( r = 0.0015 \) (which is \( 0.15\% \) as a decimal) - \( n = 12 \) (as interest is compounded monthly), - \( t = 5 \). Now we can plug in the numbers: \[ A = 1500 \left(1 + \frac{0.0015}{12}\right)^{12 \cdot 5} \] Calculating the components: \[ = 1500 \left(1 + 0.000125\right)^{60} \] \[ = 1500 (1.000125)^{60} \] Calculating \( (1.000125)^{60} \): \[ \approx 1.007635 \] Now substitute this back into the equation: \[ A \approx 1500 \times 1.007635 \approx 1511.45 \] Now to find the profit, subtract the principal from the amount: \[ \text{Profit} \approx 1511.45 - 1500 \approx 11.45 \] So, when you redeem the CD in 5 years, you will have earned approximately **\$11.45** in profit.