Assume a three-month CD purchased for $3000 pays simple interest at an annual rate of 10%. What is the balance at maturity? I don't have any work. This is question one and I have 19 more. I don't understand how to arrive at the answer.

Answer 1

P = Po + Po*r*t
P = 3,000 + 3000*(0.10/12)*3 = $3,075.