The interest earned by Pierre in the first six months is $126
A certificate of deposit (CD) is a type of savings product that accrues interest on a single sum of money for a predetermined amount of time. Unlike savings accounts, CDs require that the money remain untouched over the full term to avoid penalties and lost interest. Savings accounts typically pay lower interest rates than CDs as compensation for liquidity loss. The majority of consumer financial institutions offer certificates of deposit (CDs), but each bank is free to set its own terms, rate of interest in comparison to savings and money market products, and early withdrawal fees.
Amount deposited = $9000
rate of interest = 1.4% compounded semi-annually
So, interest earned in the first six months:
= 9000*1.4/100= $126
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