Question

Mark wants to invest 10,000 in a cd for at least 10 years the first choice is a cd that pays 4% annually and uses simple interest what is the total value after 10 years

Answer 1

Answer: 14000

Explanation:

From the question, the first thing is to first calculate the simple interest (S.I). This will be:

S.I = (principal × rate × time)/100

where principal = 10,000

rate = 4%

time = 10 years

Simple interest = (10,000 × 4 × 10)/100

= 400000/100

= 4000

The total value after 10 years will be th addition of the amount invested and the interest. This will be:

= 10,000 + 4000

= 14000