Question

Lisa is depositing ​$2 comma 500 in a​ six-month CD that pays 1.75​% interest. How much interest will she accrue if she holds the CD until​ maturity?

Answer 1

$21.875

Step-by-step explanation:

The computation of the accrued interest is shown below:

= Deposit amount × rate of interest × number of months ÷ total number of months in a year

= $2,500 × 1.75% × 6 months ÷ 12 months

= $21.875

We simply multiplied with the deposit amount, interest rate, and the given number of months to find out the accrued interest