allow 2 summers of working, Samuel has decided to invest his earnings. SAMUELS BANK OFFERS TWO CDS, a preferred CD $10,000 minimum at 1% interest, or a standard CD with $7000 minimum at 2%interest earned annually. Samuel has $8000 to invest. how many years will Samuel need to invest his money in the standard CD before he will have enough to invest in a preferred Cd?
2 answers
igot 6 but not sure im working it right
The logic of this question escapes me.
Why would a "preferred" CD earning 1% have an advantage over a Standard CD that earns 2%
anyway, so suppose he invests his $8000 at 2%
he wants $2000 interest (to get to the 10,000 minimum ?? )
2000 = 8000(.02)t
t = 2000/(8000(.02)) = 12.5 years
Why would a "preferred" CD earning 1% have an advantage over a Standard CD that earns 2%
anyway, so suppose he invests his $8000 at 2%
he wants $2000 interest (to get to the 10,000 minimum ?? )
2000 = 8000(.02)t
t = 2000/(8000(.02)) = 12.5 years
2 answers