Question

Nikki just graduated from high school and would like to buy a car. If she received $3000 in graduation gifts from family friends. She will put this money into a 18 month certificate of deposit until she finds the car of her dreams. The CD earned 10% annually and simple interest. How much will she put towards the down payment and 18 months 1.5 years?

Answer 1

$3450

Explanation:

Here, P = $3000, N = 1.5 years, R = 10%

`SI = (PNR)/(100) \\ \\ SI = (3000 * 1.5 * 10)/(100) \\ \\ SI = 450 \\ \\`

Amount of down payment

= $3000 + $450

= $3450