John Smith saw the following advertisement. Could you show him how $88.77 was

John Smith saw the following advertisement. Could you show him how $88.77 was calculated?

*As of January 31 200X and subject to change. Interest on the 9-month CD is credited on the maturity date and is not compounded. For example a $2000
9-month CD on deposit for an interest rate of 6.00% (6.05% APY) will earn $88.77 at maturity. Withdrawals prior to maturity require the consent of the bank
and are subject to a substantial penalty. There is $500 minimum deposit for IRA SEP IRA and Keogh CDs (except for 9-month CD for which the minimum
deposit is $1000). There is $1000 minimum deposit for all personal CDs (except for 9-month CD for which the minimum deposit is $2000). Offer not valid
on jumbo CDs.