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postnew [5]
3 years ago
14

The table below shows the future value of a certificate of deposit (CD) after x years Eric states the applied interest is simple

interest true or false?

Mathematics
2 answers:
oee [108]3 years ago
6 0

Answer:

A. (True)

Step-by-step explanation:

Mama L [17]3 years ago
4 0

Answer:

Option B.

Step-by-step explanation:

Eric states the applied interest is simple interest. We need to check whether the this statement is true or false.

In simple interest, the amount of deposit increased at a constant rate. It means the difference between future values of any two consecutive years will same.

Difference between future values of first two years.

d_1=210.13-205.00=5.13

Difference between future values of 2nd and 3rd year is

d_2=215.38-210.13=5.25

Since d₁≠d₂, therefore, the given statement is false.

Thus, the correct option is B.

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