Complete the table.

Question

Tak deposits
$
2000
$2000 into a CD that earns simple interest. She can pick 1, 2, or 3 years How much would she earn on each plan

Year
Principal Balance
Interest Rate
Interest Earned
1
1
$
2000
$2000
2
%
2%
$

2
2
$2000
2
%
2%
$

3
3
$2000
3
%
3%
$

Answer 1

To calculate the interest earned on a certificate of deposit (CD) that earns simple interest, we can use the formula:

\[ \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \]

Let's fill in the missing information for each year based on the given principal of $2000, the interest rates for each year, and the time in years.

Year 1

• Principal Balance: $2000
• Interest Rate: 2%
• Time: 1 year

\[ \text{Interest} = 2000 \times 0.02 \times 1 = 40 \]

Year 2

• Principal Balance: $2000
• Interest Rate: 2%
• Time: 2 years

\[ \text{Interest} = 2000 \times 0.02 \times 2 = 80 \]

Year 3

• Principal Balance: $2000
• Interest Rate: 3%
• Time: 3 years

\[ \text{Interest} = 2000 \times 0.03 \times 3 = 180 \]

Completed Table

| Year | Principal Balance | Interest Rate | Interest Earned | |------|-------------------|----------------|------------------| | 1 | $2000 | 2% | $40 | | 2 | $2000 | 2% | $80 | | 3 | $2000 | 3% | $180 |

Now, you have the completed table with the interest earned for each year based on the specifics provided.