To calculate the interest earned on a Certificate of Deposit (CD) using simple interest, you can use the formula:
\[ \text{Interest} = P \times r \times t \]
where:
- \( P \) is the principal amount (the initial deposit),
- \( r \) is the annual interest rate (in decimal form), and
- \( t \) is the time in years.
In this case:
- \( P = 1,150.00 \)
- \( r = 10% = 0.10 \)
- \( t = 8 \) years
Now, substituting these values into the formula:
\[ \text{Interest} = 1,150.00 \times 0.10 \times 8 \]
Calculating this step by step:
-
Calculate \( 1,150.00 \times 0.10 \): \[ 1,150.00 \times 0.10 = 115.00 \]
-
Then multiply by \( 8 \): \[ 115.00 \times 8 = 920.00 \]
Thus, the total interest earned by the end of 8 years is $920.
Rounding to the nearest dollar, the interest earned is:
\[ \boxed{920} \]