You invest $2,000.00 in a CD for six months at 4.25% APY. How much interest will you earn? (1 point) Responses $0.43 $0.43 $2,042.06 $2,042.06 $85.00 $85.00 $42.06
To calculate the interest earned, we can use the formula:
Interest = Principal * Rate * Time
Principal = $2,000.00
Rate = 4.25% = 0.0425
Time = 6 months = 0.5 years
Interest = $2,000.00 * 0.0425 * 0.5
Interest = $42.50
Therefore, the interest earned is $42.50.