Question

Logan deposite $5,250.00 in a cd that pays 3.75% simple interest he keeps the money in the account for 5 years but doesn't make amy deposits or withdrawal. How much interst will be earn after 5 years?

Answer 1

To find the interest after 5 years

We will use the formula

`S.I=(PRT)/(100)`

WHERE

P is the principal

R is the rate

T is the time

S. I is the simple interest

From the question

P= $5,250.00

R= 3.75

T= 5

Substitute the values into the formula:

S.I =

`SI\text{ =}(5250*3.75*5)/(100)`
`=(98437.5)/(100)`

=$984.375

Hence;

The interest earned after 5 years is $984.375