Question

suppose you plunk $5000 into a one-year certificate of deposit (CD) that pays simple interest at 3% per annum. The interest you earn after one year would be $150:​

Answer 1

Answer:$5,000×3%×1

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Step-by-step explanation:

Answer 2

Simple Interest
Simple interest is calculated using the following formula:

Simple Interest
=
P
×
r
×
n
where:
P
=
Principal amount
r
=
Annual interest rate
n
=
Term of loan, in years

​
Simple Interest=P×r×n
where:
P=Principal amount
r=Annual interest rate
n=Term of loan, in years
​