Marcus receives an inheritance of $7,000. He decides to invest this money in a 20-year certificate of deposit (CD) that pays 2.5% interest compounded monthly. How much money will Marcus receive when he redeems the CD at the end of the 20 years? Question content area bottom Part 1 Marcus will receive $____ . (Round to the nearest cent.)

Use the formula for compound interest: A = P(1 + r/n)^(nt) A = the amount of money accumulated after n years, including interest. P = $7,000. r = annual interest rate (as a decimal), which is 2.5% or 0.025. n=12 years Substitute the values: A = 7000(1 + 0.025/12)^(12*20) A ≈ 7000(1 + 0.00208333)^(240) A ≈ 7000(1.00208333)^240 A ≈ 7000 * 2.03988736 A=11535.04782821748 Answer: $11,535.05 (rounded to two decimal places)