Marcus receives an inheritance of \( \$ 9,000 \). He decides to invest this money in a 12 -year certificate of deposit (CD) that pays \( 7.0 \% \) interest compounded monthly. How much money will Marcus receive when he redeems the CD at the end of the 12 years? Marcus will receive \( \$ \square \) (Round to the nearest cent.)

To find out how much money Marcus will receive when he redeems the CD, we can use the formula for compound interest: \[ A = P \left(1 + \frac{r}{n}\right)^{nt} \] where: - \( A \) is the amount of money accumulated after n years, including interest. - \( P \) is the principal amount (the initial amount of money). - \( r \) is the annual interest rate (decimal). - \( n \) is the number of times that interest is compounded per year. - \( t \) is the number of years the money is invested. Given: - \( P = 9000 \) - \( r = 0.07 \) - \( n = 12 \) (monthly compounding) - \( t = 12 \) Now we plug in the values: \[ A = 9000 \left(1 + \frac{0.07}{12}\right)^{12 \times 12} \] Calculating \( \frac{0.07}{12} = 0.00583333 \) (approximately). Thus, \[ A = 9000 \left(1 + 0.00583333\right)^{144} \] Calculating inside the parentheses: \[ 1 + 0.00583333 \approx 1.00583333 \] Now raising it to the power of 144: \[ A \approx 9000 \times (1.00583333)^{144} \] Calculating \( (1.00583333)^{144} \approx 2.252192 \) (approximately). Finally, \[ A \approx 9000 \times 2.252192 \approx 20269.73 \] So, rounding to the nearest cent, Marcus will receive approximately \( \$20,269.73 \) when he redeems the CD after 12 years.