Assume a 30 month CD purchased for 2000 pay simple interest at an annual rate of 5.5%. How much total interest does it turn what is the balance at maturity.

Question

Assume a 30 month CD purchased for 2000 pay simple interest at an annual rate of 5.5%. How much total interest does it turn what is the balance at maturity. 
They want to know the total interest and the balance at maturity and they want us to give our answer to two decimal places

Ms. Sue · Accepted Answer

I = PRT I = 2000 * 0.055 * 2.5 I = ? Add the interest to the principle to get the balance.