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11 August, 19:20

Jake invested $7,500 in a 5-year CD that

pays 3.9% simple interest annually. How

much interest will the CD earn in 5 years?

A $292.50

B $1,462.50

C$7,792.50

D $8,962.50

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Answers (1)
  1. 11 August, 22:38
    0
    D. $8,962.50

    P stands for principal

    R stands for rate

    T stands for time

    A=$7,500 (1 + (0.039*5)) = $8,962.5

    A=$8,962.50

    So Jake will have $8,962.50 of interest after 5 years.
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