Alex invested $400 in a CD that pays 3% simple interest, calculated semiannually. How much money will Alex earn in 2 years? A. $

Question

marshall27 [118]

3 years ago

10

Alex invested $400 in a CD that pays 3% simple interest, calculated semiannually. How much money will Alex earn in 2 years? A. $

74 B. $24 C. $54 D. $14

Mathematics

1 answer:

galina1969 [7] · Answer 1 · 2022-02-06T11:24:58+03:00

galina1969 [7]3 years ago

3 0

Simple interest is calculated using the formula
I = Prt . . . . . . . . . . P = principal, r = interest annual rate, t = time (years)
I = $400·0.03·2
I = $24

In 2 years, Alex will earn ...
B. $24