I think offers a certificate of deposit with CD at a 10% simple interest rate for 8 years if an investor deposits 1,150 into a CD and does not make it additional deposits how much interest will be earned by the end of 8 years around to the nearest dollar

Answer 1

To calculate the interest earned on a certificate of deposit (CD) with 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 interest rate (as a decimal),
• \( t \) is the time in years.

In this case:

• \( P = 1,150 \)
• \( r = 10% = 0.10 \)
• \( t = 8 \) years

Now, plug in the values:

\[ \text{Interest} = 1,150 \times 0.10 \times 8 \]

Calculate the interest:

\[ \text{Interest} = 1,150 \times 0.10 \times 8 = 1,150 \times 0.8 = 920 \]

So, the total interest earned by the end of 8 years is $920.