Question

What is the balance after two years on a CD with an initial investment of $3,000.00 and a 2.5% interest rate? A. $3050.00 C. $3151.88 B. $3150.00 D. $3075.00​

Answer 1

Explanation:

The balance will be the initial deposit ( p = 3000) plus the interest earned for two years p r t where r = decimal interest per year t = 2 years

Balance = $ 3000 + 3000 * .025 * 2 = $ 3150.00