Respuesta :

In financial terminology CD is referred to as the Certificate of Deposits.


These are a type of investments.


So, for quea number 1, Option 1 " a certificate of deposit" is correct



Interest earned on CD is calculated as follows :


Interest = Principal * Rate * Time /100

(If rate is expressed in percentage)


or, Principal * Rate * Time

( If rate is expressed in absolute number)


So, for question number2, Option 2 is correct i.e multiply the interest rate by principal and time.


Hope it helps.


Thank You ..!!

wiseowl2018

Answer:

Part 1. The correct option is A which is a certificate of deposit.

Part 2. The correct option is B which is multiply principal with interest and time.

Step-by-step explanation:

Part 1:

Explanation:

  • A certificate of deposit is a type of time deposit, which is actually a type of system in which money should be saved in bank for a specific period of time. To get the mentioned rate of interest.
  • They are usually declared by banks.
  • Sometimes, it is also known as share certificate.

Part 2:

Explanation:

The formula to calculate the interest from CD is as follow:

                Interest = Principal * Rate *Time.

Now some times the rate is mentioned in form of percentage as 10%, 20% etc and some times in form of simple absolute values.

The above given formula is valid when interests are in form of absolute values.

If the rates are in percentage then formula is:

                        Interest = (Principal * Rate *Time)/100



                                         





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