Gabriel put $6000 in a 2-year CD paying 4% interest, compounded monthly. After 2 years, he withdrew all his money. What was the amount of the withdrawal?

First, we calculate for the effective annual interest given the interest in the scenario.

ieff = (1 + i/m) ^m - 1

Substituting the values,

ieff = (1 + 0.04/12) ^12 - 1 = 0.0407

The effective interest is equal to 4.07%.

The future amount after 2 years,

F = ($6000) x (1.0407) ^2 = $6498.86