Jasmine deposits

Question

$
1800
$1800 into a 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
$
1800
$1800
1.5
%
1.5%
$

2
2
$1800
2
%
2%
$

3
3
$1800
2.5
%
2.5%
$

Answer 1

To calculate the interest earned for each plan, we will use the formula for simple interest:

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

Where:

• Principal is the initial amount of money deposited.
• Rate is the annual interest rate (as a decimal).
• Time is the number of years the money is invested or borrowed.

Now, let's calculate the interest earned for each of Jasmine's plans:

Plan 1: 1 Year at 1.5%

• Principal: $1800
• Rate: 1.5% (or 0.015 in decimal)
• Time: 1 year

\[ \text{Interest} = 1800 \times 0.015 \times 1 = 27 \]

Interest Earned for 1 Year: $27

Plan 2: 2 Years at 2%

• Principal: $1800
• Rate: 2% (or 0.02 in decimal)
• Time: 2 years

\[ \text{Interest} = 1800 \times 0.02 \times 2 = 72 \]

Interest Earned for 2 Years: $72

Plan 3: 3 Years at 2.5%

• Principal: $1800
• Rate: 2.5% (or 0.025 in decimal)
• Time: 3 years

\[ \text{Interest} = 1800 \times 0.025 \times 3 = 135 \]

Interest Earned for 3 Years: $135

Summary of Earnings

• 1 Year at 1.5%: $27
• 2 Years at 2%: $72
• 3 Years at 2.5%: $135

So, Jasmine would earn $27, $72, and $135 for each respective plan.