You deposit $3000 in a CD (certificate of deposit) that earns 5.6% simple annual interest. How long will it take to earn $336 in interest?
I = PRT
336 = (3000)(.056)(T)
T = 336/ (3000)(.056) = 2 years
To find out how long it will take to earn $336 in interest on a CD, we can use the formula for simple interest:
Interest = Principal x Interest Rate x Time
In this case, the principal is $3000, the interest rate is 5.6%, and we need to find the time it takes to earn $336 in interest.
Let's rearrange the formula to solve for Time:
Time = Interest / (Principal x Interest Rate)
Now let's substitute the values into the formula:
Time = $336 / ($3000 x 5.6%)
To calculate the interest rate, we need to convert it to a decimal by dividing it by 100:
Time = $336 / ($3000 x 0.056)
Now we can simplify the equation:
Time = $336 / $168
Time = 2 years
So, it will take 2 years to earn $336 in interest on the CD.