Question

DeSean buys a 6-month Certificate of Deposit (CD) for $5,000. The interest is 3% per year. How much will DeSean earn at the end of 6 months?

Answer 1

$75.00

Explanation:

DeSean bought a 6-month Certificate of Deposit for $5,000 at the rate of 3% per year.

Formula :
`I=(P* r* t)`

I = Interest

P = $5,000

r = 3%
`((3)/(100))` = 0.03

t = 0.5 years (6 months)

`I=(5,000* 0.03* 0.5)`

I = $75.00

DeSean earned $75.00 at the end of 6 months.