Serena has 2,500 to invest in a cd (certificate of deposit)

Serena would like to have $3,000 altogether. If the interest rate is 5% in how many years will she have $3,000?

Serena has 2,500 to invest in a cd (certificate of deposit).

=> Serena would like to have $3,000 altogether.

=> If the interest rate is 5% in how many years will she have $3,000?

Let’s first find the annual interest of 2500 that has 5% interest rate.

=> 2 500 *.05 = 125

Now, we need to have 500 dollars to be able to have 3000 dollars

=> first year’s money = 2 500 + 125 = 2625

=> 125 * 4 = 500

Thus, in 4 years, Serena will be able to get 3000 dollars in her account.