After saving $250, Li invests in a certificate of deposit (CD) that pays 2.6% annual interest. What will be the value of Li’s CD after she has had it for one year? Show your work.
To find the value of Li's CD after one year, we need to calculate the interest earned on the initial investment of $250.
Interest = Initial Investment * Interest Rate
Interest = $250 * 2.6% = $250 * 0.026 = $6.50
The value of Li's CD after one year will be the initial investment plus the interest earned.
Value after one year = Initial Investment + Interest = $250 + $6.50 = $256.50
Therefore, the value of Li's CD after one year will be $256.50.