Question

What is the balance after 2 years on a CD with an initial investment of $2,600.00 and a 3.2% interest rate?

A. $2,606.40 C. $2.769.06
B. $2,766.40 D. $8.320.00​

Answer 1

Given: fond the insert rate of 3.2% of $2,600.00.

First, find 3.2% of $2,600:

`(3.2)/(100)` * $2,600

= 3.2 * 26

= $83.2

Then add ( interest ) the value with 2,600:

$2,600 + $83.2 = $2,683.2

Therefore the interest rate is $2,683.2.