Question

Abbi invested $1,500 in a certificate of deposit with a simple interest rate of 4%. Find the interest earned in 6 years. Then find the total of principal plus interest.

Answer 1

$360.00;$1,860.00

Explanation:

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Answer 2

Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments.

Find the interest earned in 6 years.
A = P(1 + rt)
A = 1500 (1 + 0.04(6)) = 1860

Then find the total of principal plus interest.

Total = 1500 + 1860 = 3360