Jerry invested $14,000 in a certificate of deposit at 5%. He also put $2,500 in a savings account at 3%. How much interest will he earn after one year?
14,000 * 0.05 = ?
2,500 * 0.03 = ?
Add those products together to find his total interest.
775
To find out the amount of interest Jerry will earn after one year, we need to calculate the interest earned on each account separately and then add them together.
To calculate the interest earned on the certificate of deposit (CD), we can use the formula: Interest = Principal * Rate * Time.
Principal = $14,000
Rate = 5% expressed as a decimal = 0.05 (5/100)
Time = 1 year
Interest earned on the CD = $14,000 * 0.05 * 1 = $700
Next, let's calculate the interest earned on the savings account.
Principal = $2,500
Rate = 3% expressed as a decimal = 0.03 (3/100)
Time = 1 year
Interest earned on the savings account = $2,500 * 0.03 * 1 = $75
Now we can add the interest earned on both the CD and the savings account.
Total interest earned = $700 + $75 = $775
Therefore, Jerry will earn $775 in interest after one year.