Question

A certificate of deposit whith principal $150 earns 4%annual interest for 2 years

Answer 1

Answer:

$162 ( or 162.24 when interest compounded)

Step-by-step explanation:

If 4% is simple interest, $150 after 2 years

150 x (1 + 0.04 x 2) = 150 x 1.08 = 162.00

If it is compound interest

150 x (1 + 0.04)² = 150 x 1.0816 = 162.24