Question

(3) Sally deposits $4,000 in a certificate of deposit that Pays 6 3/4%

Simple interest. What is her balance after one year?

Answer 1

so let's say that'd be 6.75% for the simple interest rate.

`~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$4000\\ r=rate\to 6.75\%\to (6.75)/(100)\dotfill &0.0675\\ t=years\dotfill &1 \end{cases} \\\\\\ A = 4000[1+(0.0675)(1)]\implies A=4000(1.0675) \implies A = 4270`