Question

Assume a three-month CD purchased for $3000 pays simple interest at an annual rate of 10%. What is the balance at maturity? I don't have any work. This is question one and I have 19 more. I don't understand how to arrive at the answer.

Oct 26, 2014

P = Po + Po*r*t
P = 3,000 + 3000*(0.10/12)*3 = $3,075.

Oct 27, 2014

Related Questions

john deposited 3000 into an account with 5% annual interest rate compounde quarterly at the beginnin... Assume a 30-month CD purchased for pays simple interest at an annual rate of 5.5%. How much total i... Assume a 30-month CD purchased for pays simple interest at an annual rate of 5.5%. 1. How much...