Answer: you must put $5000 in this CD now in order to have 8200
Step-by-step explanation:
The formula for determining simple interest is expressed as
I = PRT/100
Where
I represents interest paid on the amount of money invested.
P represents the principal or amount of money invested.
R represents interest rate on the investment.
T represents the duration of the investment in years.
From the information given,
I = total amount - Principal
I = 8200 - P
R = 8%
T = 8 years
Therefore,
8200 - P = (P × 8 × 8)/100
8200 - P = 0.64P
0.64P + P = 8200
1.64P = 8200
P = 8200/1.64
P = $5000
