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29 March, 13:42

Assume a 30-month cd purchased for $3000 pays simple interest at an annual rate of 5.5%. how much total interest does it earn? what is the balance at maturity?

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  1. 29 March, 13:45
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    It will earn 0.55 x 4000 = ? annually.

    ? x 2.5 years = total interest earned.

    4000 + interest earned = balance at maturity.
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