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geneva
geneva asked in Science & MathematicsMathematics · 4 weeks ago

Finance problem needing help?

 Mr. Cleo buys an 18-month CD that pays 4 3/4% (4 and 3 quarters percent) simple interest for $5,000. Find the value of the CD at the end of its term.

3 Answers

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  • Puzzling
    Lv 7
    4 weeks ago
    Favorite Answer

    The formula for simple interest is:

    A = P(1 + rt)

    P : original principal (5000)

    r : annual interest rate, as a decimal (0.0475)

    t : time, in years (18 months = 1.5 years)

    A = 5000(1 + 0.0475*1.5)

    A = $5,356.25

  • Krishnamurthy
    Lv 7
    4 weeks ago

     Mr. Cleo buys an 18-month CD 

     that pays 4 3/4% simple interest for $5,000. 

     Find the value of the CD at the end of its term.

     End Balance $5,368.49

     After Inflation Adjustment $5,135.66

     Total Principal $5,000.00

     Total Interest $368.49

     * interest rate of 4.75% compound monthly 

     is equivalent to annual rate of 4.855%

     

    Source(s): https://www.calculator.net/cd-calculator.html?csta...
  • jacob s
    Lv 7
    4 weeks ago

    value of the CD at the end of its term = principle +simple interest

    = 5000 + 5000 *(4 +3/4)/100 *18/12

    =$5356.25

    I hope this helps you Geneva! Please rate !

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