not sure how to solve this problem, Mrs. Smith put $5,000 into a certificate of deposit at the bank that paid 6% interest per year. if the bank paid simple interest on this money, how much would Mrs. Smith earn in a year
I = Po*r*t = 5000*0.06*1 = $300.
To calculate the amount Mrs. Smith would earn in a year from a certificate of deposit with simple interest, you can use the following formula:
Simple Interest = Principal (P) × Rate (R) × Time (T)
In this case:
Principal (P) = $5,000
Rate (R) = 6% or 0.06 (expressed as a decimal)
Time (T) = 1 year
Now, let's plug these values into the formula:
Simple Interest = $5,000 × 0.06 × 1
Simple Interest = $300
Therefore, Mrs. Smith would earn $300 in a year from the certificate of deposit.