Question

PLESESSSSS HELPPP

Sue bought a six-month CD for $2000. She said that at maturity it paid $85.00
in interest. Assume that this was simple interest, and determine the APR.
_____ %

Answer 1

Answer: APR = 8.5%

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Work Shown:

i = p*r*t

85 = 2000*r*0.5

85 = 1000r

1000r = 85

r = 85/1000

r = 0.085

The APR is 8.5%

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Side note: I used t = 0.5 since 6 months = 6/12 = 1/2 = 0.5 years