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:
2 answers:
Answer: $5,000×3%×1
Step-by-step explanation:
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
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