A bank offers a CD that pays a simple interest rate of 6 %. How much must you put in this CD now in order to have $11 comma 700 to replace all the windows in your house in 5 years?

You should invest US$ 9,000 in the CD to replace all the windows in your house.

Step-by-step explanation:

Let's recall that the simple interest formula is:

A = P * (1 + r * t), where,

A = final amount

P = initial principal balance

r = annual interest rate

t = time (in years)

Replacing with the real value, we have:

11,700 = P * (1 + 0.06 * 5)

11,700 = P * (1.3)

P = 11,700/1.3

P = 9,000

You should invest US$ 9,000 in the CD to replace all the windows in your house in 5 years.