Question

A bank offers a CD that pays a simple interest rate of 8%. How much must you put in this CD now in order to have $ 13,760 to replace all the windows in your house in 9 years?

Answer 1

R=8%
T=9
A=13760=P + S.I= P + P*R*T/100 = P(1+ R*T/100)= P(1+8*9/100)=P(1+0.72)

SO, P= 13760/1.72 =8000
Thats the answer

Answer 2

Initially we need to put for CD is $8000.

What is Simple interest ?

"Simple interest is a method to calculate the amount of interest charged on a sum at a given rate and for a given period of time".

For the given situation,

Principal be 'P'

Rate of Interest, R = 8% = 0.08

Time, T = 9 years

Amount, A = $13760

The formula for amount in simple interest,

A = P + S.I. and

S.I. = P × R × T

On substituting the above values,

$A= P+(PRT)$

⇒$A= P(1+RT)$

⇒$13760=P(1+(9)(0.08))$

⇒$13760=P(1.72)$

⇒$P=\frac{13760}{1.72}$

⇒$P=8000$

Hence we can conclude that initially we need to put for CD is $8000.

Learn more about simple interest here

brainly.com/question/18858554

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