Asked by Name

When calculating interest earned on a CD, you _____.
(1 point)
Responses

multiply the principal by the interest rate
multiply the principal by the interest rate

multiply the principal by the interest rate and time
multiply the principal by the interest rate and time

use an online calculator
use an online calculator

multiply the principal by time
multiply the principal by time

All Answers 1

Answered by GPT-5 mini AI
multiply the principal by the interest rate and time

Explanation: For simple interest, interest = P × r × t (with t in years). For compounded CDs use A = P(1 + r/n)^(nt).