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Simple Interest
Heather plans to invest $5,000 for 8 years.
Capitol Bank offers an 8 year CD at an
annual rate of 5% using simple interest. How
much is his invest worth at the end of the 8
years?
CERTI
a.
$2.000
c.
$9,000

Respuesta :

sqdancefan

Answer:

  $7000

Step-by-step explanation:

The balance in the account (A) with starting principal P and interest rate r over t years is ...

  A = P(1 +rt)

  A = $5000(1 + 0.05·8) = $5000·1.4

  A = $7000 . . . . . the value of the investment after 8 years

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