Answers:
- interest = $75
- balance at maturity = $3075
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Explanation:
The simple interest formula is
i = p*r*t
where in this case,
- p = 3000 = principal (amount deposited)
- r = 0.10 = annual interest rate in decimal form
- t = 3/12 = 0.25 = number of years
So,
i = p*r*t
i = 3000*0.10*0.25
i = 75 is the amount of interest earned
This adds onto the initial deposit to get the final balance when the CD matures (ie when you're able to withdraw the money without penalties)
The balance at maturity is p+i = 3000+75 = 3075 dollars
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In short, you deposit $3000 into the CD and have to wait 3 months for the amount to update to $3075.
Answer:
Step-by-step explanation:
It would be A, the first one.
Answer:
0.98
Step-by-step explanation:
Answer:
960
Step-by-step explanation:
The simple interest formula is the following:
I = P*r*t
Where I is the interest generated after t years, P is the inicial value and r is the rate of interest.
In this case, we have that the inicial value is P = 4000, the rate of interest is r = 8% = 0.08 and the amount of time invested is t = 3 years.
So, the interest will be:
I = 4000*0.08*3 = 960
3 is a common multiple .. (3x4=12....3x5=15)
