1. **State the problem:** You have a certificate of deposit (CD) with an initial deposit (principal) of $2100, an annual percentage rate (APR) of 0.83% compounded monthly, and a term of 5 years. We want to find the profit earned when the CD is redeemed. 2. **Formula used:** The future value formula for compound interest is: $$ A = P \left(1 + \frac{r}{n}\right)^{nt} $$ where: - $A$ is the amount after $t$ years, - $P$ is the principal (initial deposit), - $r$ is the annual interest rate as a decimal, - $n$ is the number of compounding periods per year, - $t$ is the time in years. 3. **Identify values:** - $P = 2100$ - $r = 0.83\% = 0.0083$ - $n = 12$ (monthly compounding) - $t = 5$ 4. **Calculate the amount $A$:** $$ A = 2100 \left(1 + \frac{0.0083}{12}\right)^{12 \times 5} $$ 5. **Simplify inside the parentheses:** $$ 1 + \frac{0.0083}{12} = 1 + 0.0006916667 = 1.0006916667 $$ 6. **Calculate the exponent:** $$ 12 \times 5 = 60 $$ 7. **Calculate $A$:** $$ A = 2100 \times (1.0006916667)^{60} $$ 8. **Calculate the power:** $$ (1.0006916667)^{60} \approx 1.0425 $$ 9. **Calculate $A$:** $$ A = 2100 \times 1.0425 = 2189.25 $$ 10. **Calculate profit:** Profit = Amount - Principal $$ = 2189.25 - 2100 = 89.25 $$ **Final answer:** The profit earned after 5 years is **89.25**.