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A bank offers a CD that pays a simple interest rate of 6.0. How much must you put in this CD now in order to have ​$4500 for a​ home-entertainment center in 6 years.

User Cynic
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Since its simple interest then we shouldn't me calculating compound interest, Rate of interest = 6.0 Time period = 6 years Expecting amount after 6 years = ​$4500 There for , 4500/(1 + (3*6/100)) which is 4500/(1 + 0.18) It gives us 4500/1.18 = 3813.56 so we have to put $3813.56
User Mark Freeman
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