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15 October, 23:21

Kim invested $5000 in a 3 year certificate of deposit (CD) that pays 2.3% interest compounded annually. What will the CD be worth at the end of 3 years?

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  1. 16 October, 00:35
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    Step-by-step explanation:

    The formula for determining simple interest is expressed as

    I = PRT/100

    Where

    I represents interest paid on the amount of money invested.

    P represents the principal or amount of money invested.

    R represents interest rate on the investment.

    T represents the duration of the investment in years.

    From the information given,

    P = $5000

    R = 2.3%

    T = 3 years

    Therefore,

    I = (5000 * 2.3 * 3) / 100

    I = $345

    The total amount that the CD would be worth at the end of 3 years is

    5000 + 345 = $5345
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