Claire earned $9000 in a 15 month CD that pays an annual 8.67% . How much did Claire earn with this? Could you show me the steps to the answer

The problem states that she earned $9000.

Sure! To calculate the amount Claire earned on her CD, we need to use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A is the final amount
P is the principal amount
r is the annual interest rate (expressed as a decimal)
n is the number of times interest is compounded per year
t is the time in years

In this case, Claire's principal amount (P) is $9000, the annual interest rate (r) is 8.67% (or 0.0867 as a decimal), and the time period (t) is 15 months. We need to convert the time from months to years, so we divide 15 by 12, which gives us 1.25 years.

Now, we can substitute these values into the formula:

A = 9000(1 + 0.0867/1)^(1*1.25)

First, we simplify the expression inside the parentheses:

A = 9000(1.0867)^(1.25)

Next, we evaluate the exponent:

A = 9000(1.0867)^1.25

Finally, we calculate the final amount earned:

A ≈ $9000(1.2495)

A ≈ $11,245.50

Therefore, Claire earned approximately $11,245.50 on her 15-month CD with an annual interest rate of 8.67%.