Question
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
Answers
GPT-4o mini
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**.
\[
\text{Interest} = P \times r \times t
\]
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**.