Question

9) Jayden puts $700 into a Certificate of Deposit (CD) account that ears 18% interest each year. What will the interest of the CD account be after 6 years?A $75.60 B $12.60 C 5775.60 D 571260

Answer 1

The simple interest S is given by

`S=(P\cdot r\cdot t)/(100)`

where P is the principal, t the time (years) and r is the interest rate.

In our case, P=700, r=0.18, and t=6. By substituting these values, we have

`\begin{gathered} S=(700\cdot0.18\cdot6)/(100) \\ S=(756)/(100) \\ \\ \end{gathered}`

then, the interest S is equal to $7.56, which corresponds to option A