Assume a 30-month CD purchased for pays simple interest at an annual rate of 5.5%. How much total interest does it earn? What is the balance at maturity?
purchased for??????
Can anyone help with this still? Purchased for $3000.
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To find the total interest earned by a 30-month CD, you need to know the principal amount and the annual interest rate. In this case, the annual interest rate is 5.5%.
To calculate the interest earned, you can use the formula:
Interest = Principal x Rate x Time
Since the CD is for 30 months, you need to first convert the annual interest rate to a monthly rate by dividing it by 12.
Monthly interest rate = Annual interest rate / 12 = 5.5% / 12 = 0.4583%
Now, you can calculate the total interest earned by multiplying the principal amount by the monthly interest rate and the time in months:
Total interest = Principal x Monthly interest rate x Time
However, you haven't provided the principal amount of the CD, so without that information, it is not possible to calculate the total interest.
As for the balance at maturity, it would be the sum of the principal amount and the total interest earned.
Balance at maturity = Principal + Total interest
Again, without the principal amount, it is not possible to calculate the balance at maturity.