Question

DeSean buys a 6-month Certificate of Deposit (CD) for $5,000. The interest is 3% per year. How much will DeSean earn at the end of 6 months?

Answer 1

Answer:

$75.00

Step-by-step explanation:

DeSean bought a 6-month Certificate of Deposit for $5,000 at the rate of 3% per year.

Formula : $I=(P\times r\times t)$

I = Interest

P = $5,000

r = 3% $(\frac{3}{100})$ = 0.03

t = 0.5 years (6 months)

$I=(5,000\times 0.03\times 0.5)$

I = $75.00

DeSean earned $75.00 at the end of 6 months.