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Crank
3 years ago
5

NEED HELP ASAP PLEASE

Mathematics
1 answer:
olga nikolaevna [1]3 years ago
7 0

Answers:

  • interest = $75
  • balance at maturity = $3075

=============================================================

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

---------------

In short, you deposit $3000 into the CD and have to wait 3 months for the amount to update to $3075.

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