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 8200 to replace all the windows in your house in 8 years

Answer: you must put $5000 in this CD now in order to have 8200

Step-by-step explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the amount of money invested.

P represents the principal or amount of money invested.

R represents interest rate on the investment.

T represents the duration of the investment in years.

From the information given,

I = total amount - Principal

I = 8200 - P

R = 8%

T = 8 years

Therefore,

8200 - P = (P * 8 * 8) / 100

8200 - P = 0.64P

0.64P + P = 8200

1.64P = 8200

P = 8200/1.64

P = $5000