Question

The table below shows the future value of a certificate of deposit (CD), after x
years. Don states the applied interest is simple interest. True or false?
(number of years)
(future value)
$205.00
$210.00
$215.00
$220.00
$225.00
A. True
B. False

Answer 1

Answer:

A.  True.

Step-by-step explanation:

The value increases by the same amount ($5) every year so it is simple interest.