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12 May, 20:22

Abbi invested $1,500 in a certificate of deposit with a simple interest rate of 4%. Find the interest earned in 6 years. Then find the total of principal plus interest.

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  1. 12 May, 20:41
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    Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments.

    Find the interest earned in 6 years.

    A = P (1 + rt)

    A = 1500 (1 + 0.04 (6)) = 1860

    Then find the total of principal plus interest.

    Total = 1500 + 1860 = 3360
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