Question

Sue how did you get the 0.05 % on my last question. And here is another problem. Claire is depositing $14,000 in a 24 month CD that pays an annualized rate of 3.85%. How much will Claire receive at maturity.

Answer 1

There's no 0.05% in your previous problem. Since the CD was for only six months, I used 0.5 for the time, indicating a half a year.

Use the formula: I = PRT