A bank offers a cd that pays a simple interest rate of 4.5. how much must you put in this cd now in order to have 2500 for a home entertainment center in 4 years.

Principat amount to be invested = P = $ 2,118.64

Equation:

P = A / (1 + rt)

r = R/100 (where R is the simple interest rate)

r = 4.5%/100 = 0.045 per year

A = amount required after 4 years = $2500

t = time period = 4 years

putting the values in equation

P = 2500 / (1 + (0.045 * 4)) = 2118.6440677966

P = $ 2,118.64

The principal investment to get a total amount of $ 2,500 in 4 years is $ 2,118.64.