Question

IF YOU GET THE RIGHT ANSWER, I'LL HELP YOU GET POINTS

Answer 1

Problem:-

Graduation is 4 years away and you want to have $500 available for a trip. If your bank is offering a 4-year CD (certificate of deposit) paying 2.3% simple interest, how much do you need to put in this CD to have the money for your trip?

Solution:-

P: Principal, the amount you need to put in the CD

r: interest rate

t: time

A: total amount

________________________________

P(1+rt) = A

P(1+0.023×4) = 500

P(0.092) = 500

P = 500/0.092 = 5434.78

[Hence, you need $5434.78 to put in this CD to have the money for your trip ]