Question

A bank offers a cd that pays a simple interest rate of 3.5%. how much must you put in the cd now on in order to have $3000 for graduation trip in six years

Answer 1

Explanation:

Simple interest amount = deposit * decimal interest * time

$ 3000 = deposit * .035 * 6

$ 3000/ ( .035 *6) = deposit = $ 14285.71