Question

HELP ME PLEASE

Assume that a 30-month CD purchased for $250 pays simple interest at an annual rate of 5.5%. How much total interest does it earn?
$ _______

What is the balance at maturity? _______

Answer 1

34.38

284.38

Explanation:

I=Prt

I= 250*0.055*2.5

I=34.375

maturity is I+p

250+34.38

Answer 2

• interest = $34.38
• balance at maturity = $284.38

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Work Shown:

i = P*r*t

i = 250*0.055*(30/12)

i = 34.375

i = 34.38 is the interest earned

p+i = 250+34.38

p+i = 284.38 is the final balance