Question

⦁ A $10,000 certificate of deposit earns simple interest of 8 percent per year. Calculate the total earned money over the 5 year period?

Answer 1

Answer:

The total earned money over the 5 year period=$14,000

Step-by-step explanation:

We are given that

Principle amount, P=$10000

Rate of interest, r=8%

Time, t=5 years

We have to find the total earned money over the 5 year period.

We know that

Simple interest=$\frac{P\times r\times t}{100}$

Using the formula

S.I=[tex]\frac{10000\times 8\times 5}{100}{/tex]

S.I=$4000

Now,

Amount=P+S.I

Amount=10000+4000

Amount=$14000

Hence, the total earned money over the 5 year period=$14000