Question 6 of 24. Step 1 of 1 $4 / 24$ Correct 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 open a CD with an initial deposit of $\$ 4200$ and an APR of $0.84 \%$ 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: Answer Keypad Keyboard shortcuts Submit Answer

Step 1 ：Given values are initial deposit \(P = \$4200\), annual interest rate \(r = 0.84\% = 0.0084\) in decimal, number of times interest is compounded per year \(n = 12\), and time in years \(t = 5\).

Step 2 ：Calculate the future value using the formula \(FV = P \times (1 + r/n)^{n \times t}\). Substituting the given values, we get \(FV = 4200 \times (1 + 0.0084/12)^{12 \times 5} = \$4380.09\).

Step 3 ：Calculate the profit by subtracting the initial deposit from the future value. So, profit = \(FV - P = \$4380.09 - \$4200 = \$180.09\).

Step 4 ：Round the profit to the nearest cent to get \$180.09.

Step 5 ：Final Answer: The profit earned when you redeem the CD in 5 years is \(\boxed{\$180.09}\).