Answer: you need to put $1274 in this CD to have the money for your trip.
Step-by-step explanation:
The formula for determining simple interest is expressed as
I = PRT/100
Where
I represents interest paid on the CD.
P represents the principal or amount of money that you put in the CD
R represents interest rate that the CD is paying
T represents the duration of the investment in years.
From the information given,
R = 3.3%
T = 3 years
A = $1400
1400 = I + P
I = 1400 - P
Therefore,
1400 - P = (P × 3.3 × 3)/100
1400 - P = 0.099P
0.099P + P = 1400
1.099P = 1400
P = 1400/1.099
P = $1274
