A recent high school graduate received \( \$ 700 \) in gifts of cash from friends and relatives. In addition, he received three scholarships in the amounts of \( \$ 250 \), \( \$ 400 \), and \( \$ 1000 \). If he takes all his gift and scholarship money and invests it in a 24 -month CD paying \( 3 \% \) interest compounded daily, how much will the graduate have when he cashes in the CD at the end of the 24 -months? The praduate will have \( \$ \square \) when he cashes in the CD . Thound to the nearest cent as needed.)

To find out how much the graduate will have when he cashes in the CD at the end of the 24 months, we first need to calculate the total amount of money he has to invest, then apply the compound interest formula. 1. **Calculate total gifts and scholarships:** - Cash gifts: \( \$700 \) - Scholarships: \( \$250 + \$400 + \$1000 = \$1650 \) - Total: \( \$700 + \$1650 = \$2350 \) 2. **Use the compound interest formula:** The formula for the future value \( A \) with compound interest is given by: \[ A = P \left(1 + \frac{r}{n}\right)^{nt} \] Where: - \( P \) = principal amount (initial investment) = \( 2350 \) - \( r \) = annual interest rate (decimal) = \( 0.03 \) - \( n \) = number of times interest applied per time period = \( 365 \) (daily) - \( t \) = number of time periods (in years) = \( 2 \) Substituting the values: \[ A = 2350 \left(1 + \frac{0.03}{365}\right)^{365 \times 2} \] Calculating further: \[ A = 2350 \left(1 + 0.00008219178\right)^{730} \] \[ A = 2350 (1.061486) \] \[ A \approx 2494.00 \] Thus, the graduate will have approximately **\$2494.00** when he cashes in the CD at the end of the 24 months.